NEW YORK, March 12, 2020 (GLOBE NEWSWIRE) — via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”), along with the BudCars Cannabis Delivery Service (“BudCars”), announces a sharp rise in demand for its cannabis delivery service, driving an associated 10% week-over-week rise in total sales, over the past two weeks. The Company believes this dynamic is being driven by the stay-at-home trend that has emerged in many communities around the world in response to the global pandemic outbreak of the COVID-19 disease.
The Company believes this shift in consumer behavior will continue for the foreseeable future. As a result, BudCars is undertaking an expansion in headcount to meet the current and anticipated sharp expansion in demand. The Company now anticipates the upward shift in sales growth to help solidify its $15 million 2020 revenue target as a conservative target for sales this year.
“The Coronavirus pandemic is undeniably a game-changer for consumer behavior patterns that will likely have long-term implications as it drives new habits into place,” commented Jimmy Chan, CEO of Sugarmade, who recently announced a large stake in BudCars with an option for a controlling stake. “As a growing mobile ecommerce and delivery service in one of the fastest growing commercial markets, BudCars is extremely well-positioned for this dynamic. It’s already very clear: people are showing an overwhelming preference toward delivery as nesting takes hold. That applies to cannabis as much as anything else. We are fully prepared for a continuous ramp in demand for our delivery services over coming months and beyond.”
Management notes that the COVID-19 outbreak has resulted in a dramatic jump in demand for virtual connectivity, online consumption, and home delivery of goods and services around the world over recent weeks, and most analysts now expect that trend to continue. This has led to strong increases in demand for companies like Amazon, Postmates, and Instacart, as well as many other courier and delivery services. This dynamic is now impacting the California legal cannabis market.
Chan continued, “We aren’t just seeing a bump in the number of deliveries, but also in average order size, with many customers indicating they are stocking up on flower and edibles in case they need to stay at home for an extended period. We have even had a few customers indicate they are following the CDC’s recommendation to have at least a 30-day supply of medication on hand.”
BudCars is also preparing for changes in the way cannabis products are delivered to customers. Management is in the process of implementing enhanced safety practices, including ensuring that all drivers are well equipped and prepared to keep both company personnel and customers safe. Sugarmade and Budcars recently announced a significant expansion of cannabis delivery services within the Sacramento metropolitan area, including the communities of Granite Bay, Folsom, Arden Arcade, Carmichael, Citrus Heights, Orangevale, and Roseville/Rocklin. Additional delivery footprint growth is also underway, and further expansion announcements will be forthcoming.
Chan concluded, “Of course, we want the public to be safe during this frightening period. But we also want interested consumers to know that we plan to continue to meet the demand for delivery services in Sacramento, and to extend our reach and serve a growing regional need.”
Finally, Sugarmade is proud to announce that the Company is finalizing a multimillion-dollar deal involving cultivation and distribution licenses that promises to complete its vertical integration, improving bottom-line performance and helping to further drive exponential growth in BudCars. Details will be made public shortly.
About Sugarmade, Inc.
Sugarmade, Inc. (OTCQB: SGMD) is a product and branding marketing company investing in operations and technologies with disruptive potential. Our Brand portfolio includes CarryOutsupplies.com, SugarRush™ and Budcars.com. For more information please reference www.Sugarmade.com.
FORWARD-LOOKING STATEMENTS: This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “would,” “could,” “will” and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company’s actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others. such as, but not limited to economic conditions, changes in the laws or regulations, demand for products and services of the company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward looking statements.
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