Business
Sugarmade Announces Budcars Delivery Volume Growth Now Supports $15M+ 2020 Revenue Target
Sugarmade Announces Budcars Delivery Volume Growth Now Supports $15M+ 2020 Revenue Target.
About this update from Sugarmade, Inc.
[{"type":"text","content":"\n NEW YORK, March 04, 2020 (GLOBE NEWSWIRE) -- via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”) is excited to announce a dramatic 300 percent sequential monthly jump in delivery volume in BudCars Cannabis Delivery Service (“Budcars”) in February. The rise in volume follows the Company’s negotiated agreement toward a controlling stake in Budcars and its investment in expanding the leading delivery service’s operations and reach in Northern California. Management now projects a Budcars top-line run-rate capable of surpassing $15 million in sales in 2020, provided recent data on growth in daily orders is reliable and indicative of the impact of the Company’s recent measures over coming months. The Company has negotiated a 40 percent stake in Budcars with a provisional option to assume a controlling ownership position through the acquisition of an additional 30 percent stake. “Some of our shareholders have suggested that our vision for a massively expanded and vertically integrated Budcars might be explained to the world as the ‘Uber Eats of the cannabis market.’ But we believe that’s actually a dramatic underestimation of where Budcars is headed,” remarked Jimmy Chan, CEO of Sugarmade. “This is far more promising from a bottom-line perspective, given that we aren’t simply delivering someone else’s product. The retailer gets the juicy 20 percent net margin in this business. We are positioning ourselves as a 'Cannabis concierge service' focusing on a truly unique cannabis experience.” Management notes that recent regulatory changes in the California legal cannabis market point to a dramatic turnaround in progress in 2020 as competition from unregulated suppliers is suppressed, widening margins for licensed producers and distributors. The Company cites this transition as key in driving its strategic investment in Budcars, which was predicated on a verticalization premise that positions the Company as a dominant cannabis supplier, driving market share gains through the value-add of its efficient delivery service without sacrificing the core margin opportunity coming into place as a legal cannabis supplier. Since Sugarmade management became heavily involved in the day-to-day...