OTC: SGMD recently announced the signing of a nonbinding Letter of Intent (the LOI) with LMK. Both LMK and Sugarmade are on the same page, to work toward the negotiation of a definite lease agreement for getting access to as much as forty acres of property in Northern California. is quite determined that it will use five acres of the property to establish a licensed and regulated cannabis cultivation business. It should be noted that Jimmy Chan, who is the CEO of OTC: SGMD, Aiming to Establish Licensed Cannabis Cultivation, is also the majority owner of LMK.
Jimmy Chan said that we will keep on taking strategic steps to broaden our exposure toward the growth trend in the cannabis market. We see this growth trend as a secular growth trend and we believe that it is still in its early phase. Additionally, we have faith that our positioning in California can help us getting close to the current epicenter of this trend. Chan further went on and said that we are determined to increase the verticalization of operations as a context for our investment in BudCars. If we achieve our mission of finalizing the lease, we expect that this could lead to a considerable widening of margins on the growing volume of BudCars sales.
OTC: SGMD is partnered with BudCars Cannabis Delivery Service. It has a 40% stake in BudCars, and the option of acquiring an additional 30% is also open. BudCars Cannabis Delivery Service is a very popular distribution channel, and because of this fact, SGMD believes it will get a direct channel in the market to establish its own branded cannabis products, which later on can be distributed by the help of various distribution partners at premium pricing. Sugarmade Aiming to Establish Licensed Cannabis Cultivation in Northern California
SGDM’s in-house analysis suggests that five acres of the property have the potential to yield roundabout 8000 pounds of cannabis flowers per year.
The Letter of Intent is nonbinding on OTC: SGMD and LMK, and both parties entering into a definite lease agreement is not assured if you need to read artical about $CLSH Stock