- Secures a 5,000-square-foot facility with potential for 250 pounds output per month
- Seeing month-over-month growth with BudCars across all metrics
- Submitted application to expand BudCars into cannabis cultivation
Sugarmade (OTCQB: SGMD), a product and branding marketing company investing in operations and technologies with disruptive potential, recently secured a 5,000-square-foot indoor premium cannabis cultivation facility. Located near its Sacramento Budcars Cannabis Delivery Service hub, this new facility has production potential for as much as 250 pounds of premium dried cannabis flower per month. Based on current local averages the facility has the potential of producing as much a $1.6 million in new BudCars sales per month. As a vertical farm-to-door operation the company would also experience significant savings in cost.
BudCars is a top-shelf cannabis retail business that offers same-day delivery of top-quality product. Customers can choose from edibles, flower, pre-rolls, vapes, tinctures and concentrate from dozens of premium brands. Once the selection is made and the purchase completed online. BudCars delivers to a customer’s front door, same day.
SGMD acquired the Sacramento-based BudCars in February 2020. Since that time, the company has expanded the service geographically; it currently reaches into the communities of Granite Bay, Folsom, Arden Arcade, Carmichael, Citrus Heights, Orangevale and Roseville/Rocklin (http://nnw.fm/iDrS9). Sugarmade has seen dramatic growth and is working on expanding even further into Southern California.
“The growth has been so dramatic that we have had to drastically revise our expectations to the upside, which demands expansion, both in terms of staff and fleet in Sacramento, and in terms of regional expansion into Southern California,” said Sugarmade CEO Jimmy Chan. “As a result, we are acquiring two distribution hub locations in the LA area with cannabis licenses included so we can hit the ground running” (http://nnw.fm/Uy8MC).
That growth hasn’t slowed down as the company continues to experience record growth in every metric. In June BudCars achieved total sales of $502,903, representing a 30% month-over-month growth for three consecutive months. The company is seeing an average daily sales increase of 41% month over month along with an average customer order increase of 2% per order (http://nnw.fm/d4OcD).
“Our pricing improved. Our average order improved. We did more business with more people and booked a significant jump in gross profits while holding our 47% gross margin level as volume increased,” Chan reported (http://nnw.fm/wDg8n). “We look forward to continued breakout growth in July.”
SGMD has submitted an application to expand into cannabis cultivation. The company is looking to strategically grow BudCars through verticalization. Through the expansion into cultivation, once approved by the California Bureau of Cannabis Control, the move would connect the dots and form a solid product and supply line from farm to delivery that would further cut costs and increase the profit margins (http://nnw.fm/rmz2R).
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/SUGAR
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire 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 services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. 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 of 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
NetworkNewsWire is part of the InvestorBrandNetwork.