Business
Sugarmade Signs Definitive Agreement to Acquire California Cannabis Licenses to Provide for the Opening of Three New Vertically Integrated Nug Avenue Locations
Sugarmade Signs Definitive Agreement to Acquire California Cannabis Licenses to Provide for the Opening of Three New Vertically Integrated Nug Avenue Locations.
About this update from Sugarmade, Inc.
[{"type":"text","content":"\n NEW YORK, Aug. 31, 2021 (GLOBE NEWSWIRE) -- via InvestorWire -- Sugarmade, Inc. (OTCMKTS:SGMD) (“Sugarmade,” “SGMD,” or the “Company”), an emerging leader in the vertically integrated cannabis marketplace based in California, is excited to announce the signing of a Definitive Agreement to obtain three non-storefront California Cannabis licenses from the Los Angeles Department of Cannabis Regulation (the “DCR”), along with corresponding licenses from the California Bureau of Cannabis Control (the “BCC”), which collectively provide for the licensing of three new vertically integrated Nug Avenue cannabis delivery hubs. Each of the three licenses can be used for up to three of the five categories of licensed cannabis-related business activities allowed under the terms of these licenses: retail delivery, manufacturing, distribution, transport-only, and cultivation. By using each license for a combination of 1) retail delivery of cannabis products, 2) supply chain distribution of cannabis products, and 3) manufacturing/packaging of cannabis products, the Company now possesses the licensing credentials to open three new Nug Avenue locations in the Los Angeles metropolitan area. As announced in its release dated August 17, the Company has already acquired a property in Los Angeles that will serve as the first of these new Nug Avenue cannabis delivery hubs. “Once we have put all of these new licenses to use, we will have quadrupled our distribution footprint in the world’s largest cannabis market,” noted Sugarmade CEO Jimmy Chan. “We also continue to move toward establishing our own cultivation operations. Together, these steps are part of our core vision – to establish a full farm-to-door vertically integrated cannabis company capable of driving a much greater percentage of total sales to the bottom line for our shareholders, while capturing much greater control over product quality for our customers.” Via a definitive agreement closed on Feb. 8, 2021, the Company acquired a 70% stake in the Lynwood, California, operations of Nug Avenue, allowing the Company to recognize 100% of revenue and 70% profits generated from Nug Avenue’s Lynwood delivery service operations. These terms will carry over to each new Nug Avenue location as the C...