NEW YORK, April 16, 2020 (GLOBE NEWSWIRE) — via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”), and its BudCars Cannabis Delivery Service (“BudCars”), is excited to announce the expansion of BudCars into the Southern California marketplace through the acquisition of two locations in the greater Los Angeles area.
The Company’s primary locations in the Sacramento area have been experiencing dramatic growth, with revenues consistently increasing 10% week-over-week, driven by exploding demand for contactless delivery of cannabis products due to the coronavirus lockdown. The Company now expects to surpass $30 million in annualized revenues at these locations.
“Our Sacramento locations will pass the $10 million mark for annualized sales within the next 60-90 days,” stated Jimmy Chan, CEO of Sugarmade. “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. 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.”
Based on data from its current operations as well as trends in the LA region, management believes that each additional new BudCars hub will provide an annual revenue run-rate of $15 million to $20 million as a moderate baseline estimate.
The Company also notes that it is seeing a consistent 19% to 20% net profit on sales at its Sacramento locations and believes this will translate to new locations, fueling further expansion potential for up to as many as 20 new BudCars hubs across California over the coming 18-24 months driven primarily by cash from operations.
“We are hiring and expanding our fleet as fast as we can right now to keep up with demand,” continued Chan. “We can’t expand fast enough. But that’s a great problem to have, and LA represents an ideal new market for BudCars.”
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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