Sugarmade (OTC: SGMD), an emerging leader in the licensed cannabis sector, has released a shareholder letter from CEO Jimmy Chan. In the letter, Chan noted short-term turbulence in the market but reaffirmed the company’s belief that the long-term outlook for the industry is bright, particularly for California producers and distributors. The letter notes that the company is eyeing strategic opportunities created by marketplace inefficiencies and uncertainties, including an uncertain regulatory environment, high taxes, unlicensed cultivators entering the market and a drop in prices of cultivated cannabis products. In the letter, Chan observed that Sugarmade believes these marketplace changes create an opportunity to “invoke a new short-term strategy while our long-term plans to cultivate at our new Lemon Glow facility are developing.” The company is moving forward on its Lemon Glow Company plans and is embarking on a strategy to enter into contract cultivation arrangements with local Lake County, California, cultivators that have decided not to engage in their own cultivation efforts this year. “We are in negotiations with several local permitted and licensed operators that are agreeable to a partnership arrangement with Sugarmade to manage operations for cannabis cultivation,” states Sugarmade CEO Jimmy Chan in the shareholder letter. “We are also in active negotiations on the distribution side of the business that will allow Sugarmade to bring this cultivated cannabis to the marketplace. Invoking this dynamic short-term strategy, while continuing to develop our longer-term strategy to fully develop the large Lemon Glow property for cultivation, will allow Sugarmade to significantly advance the timeframe for gaining market share in this industry — and we believe we will be able to do so based on a cost model that will allow us to produce strong margins this cultivation season.”
To view the full press release, visit https://cnw.fm/ORFj0
About Sugarmade Inc.
Sugarmade is a product and branding marketing company investing in operations and technologies with disruptive potential. The company’s portfolio includes CarryOutsupplies.com, SugarRush(TM), NUG Avenue, Lemon Glow and Budcars. For more information about the company, please visit www.Sugarmade.com.
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