On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

Sugarmade Inc. (SGMD) Shareholder Letter Outlines Short-Term, Long-Term Plans for Growth, Strong Margins

  • CEO notes that company will be well-positioned moving forward, “especially as our large Lemon Glow property comes online.”
  • Short term, Sugarmade is embarking on a bold, new strategy to enter into contract arrangements with local Lake County, California, cultivators.
  • SGMD is already in negotiations with local permitted and licensed operators that are agreeable to partnership arrangements for cannabis cultivation. 

The evolving California cannabis market is creating promising long-term and short-term opportunities for Sugarmade (OTC: SGMD) — and its shareholders. That is the message in a shareholder letter from CEO Jimmy Chan that was sent to all SGMD shareholders (https://nnw.fm/sgSvt).

“While there is undoubtedly short-term turbulence in the market, we believe the long-term outlook of the cannabis industry is very bright, especially for California producers and distributors,” Chan stated in the letter. “Historically, California-grown cannabis has always been highly desirable in the marketplace. Sugarmade believes this will continue as legalization at the U.S. federal level creates substantial opportunities to supply other states with top-grade California-grown cannabis. Thus, we expect our company will continue to be well-positioned moving forward, especially as our large Lemon Glow property comes online.”

Sugarmade closed on the acquisition of Lemon Glow Company Inc. and all of its assets, interests, property, and rights last year (https://nnw.fm/dNLW1). The acquisition included 640 acres of property, of which 32 acres have already been designated for outdoor cannabis cultivation. At full scale production, the company estimates the annual potential cultivation yield of the property to be some 4,000 pounds of dry trimmed cannabis flower per acre per year, which represents approximately 128,000 pounds, or 64 tons, of dry trimmed cannabis flower per year in total.

Short term, the letter outlines several strategic opportunities that the company intends to pursue. Noting several significant changes in the marketplace, including an uncertain regulatory environment, high taxes, and drop in prices for cultivated cannabis products, Chan observed that numerous cannabis cultivation license holders, including unlicensed growers, have been forced to forgo plans to directly cultivate cannabis this year.

Calling this an “opportunity to invoke a new short-term strategy while our long-term plans to cultivate at our new Lemon Glow facility are developing,” Chan explained that for the 2022 cannabis cultivation season, Sugarmade is “embarking on a new and bold strategy to enter into contract cultivation arrangements with local Lake County, California, cultivators that have decided not to engage in their own cultivation efforts for the 2022 season. 

“These operators have already made significant investments in infrastructure and have highly specialized personnel available that we can utilize on a contract basis for our production of cannabis,” the letter stated. “By contracting with the owners of these already available resources, Sugarmade will gain immediate access to the marketplace based on an advantageous cost model that will place Sugarmade on par, or in some cases, at a superior cost position compared to many of the larger cannabis cultivation and distribution companies in the industry.”

Chan reported that the company is already in negotiations with several local permitted and licensed operators that are agreeable to a partnership arrangement with Sugarmade to manage operations for cannabis cultivation. “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,” he continued. “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.”

For more information, visit the company’s website at www.Sugarmade.com

NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://nnw.fm/SGMD

About NetworkNewsWire

NetworkNewsWire (“NNW”) is a financial news and content distribution company, one of 50+ brands within the InvestorBrandNetwork (“IBN”), that provides: (1) access to a network of wire solutions via InvestorWire to reach all target markets, industries and demographics in the most effective manner possible; (2) article and editorial syndication to 5,000+ news outlets; (3) enhanced press release solutions to ensure maximum impact; (4) social media distribution via IBN millions of social media followers; and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience comprising investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.

To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 77948 (U.S. Mobile Phones Only)

For more information, please visit https://www.networknewswire.com

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer

NetworkNewsWire (NNW)
New York, New York
212.418.1217 Office

NetworkNewsWire is part of the InvestorBrandNetwork


Select A Month

NetworkNewsWire Currently Accepts



Bitcoin Cash

Bitcoin Cash

Doge Coin






USD Coin

USD Coin

Contact us: 212.418.1217