NEW YORK, April 22, 2020 (GLOBE NEWSWIRE) — via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”), and its BudCars Cannabis Delivery Service (“BudCars”), issues the following Letter to Shareholders from the CEO:
Dear Valued Shareholder,
On behalf of the entire team, allow me to start out by expressing our gratitude for your patience and commitment as we navigate what increasingly appears to be an extremely promising road stretching out ahead of Sugarmade. My goal today is to discuss that road ahead and to provide shareholders with a deeper sense of perspective as we expand our BudCars segment to capitalize on this extremely powerful growth opportunity.
BudCars is quickly becoming a powerful presence in the California cannabis delivery marketplace. Our primary hub in Sacramento has experienced extremely rapid growth in terms of total orders, sales, daily volume, staff, and fleet. And this growth has been dynamic, robust, and sustained over the past two months. We believe this trend will continue to define our 2020 operational outcome distribution, granting us strong conviction in our aggressive revenue targets, as outlined in Sugarmade’s recent corporate communications.
Our expectation is that we will surpass the $10 million annualized revenue target before August (possibly well before), putting BudCars on a pace to reach and surpass $30 million in annualized revenues by year end. Especially, with the support of the expansion of two new locations.
As we recently announced, we are now expanding into the Greater Los Angeles regional marketplace, which represents perhaps the biggest and most lucrative cannabis delivery market in the world. We are initially set to open two new BudCars distribution hubs in this area. Given our research into this regional marketplace opportunity and our experience thus far with the BudCars business model in Sacramento, we anticipate an annualized revenue run-rate of $15-20 million at a minimum at each of the new LA locations.
We also plan to continue to expand BudCars across the California marketplace. Underlying demand for this service seems bottomless, and we believe we have only just started to scratch the surface of the potential for growth in this segment. But we are also very conscious of our responsibility to all of our stakeholders to maintain a fiscally viable path forward each step of the way.
As a final note, to demonstrate my personal commitment and conviction, I have contractually and permanently waived my right to convert my own 2.5 million preferred share stake in Sugarmade into common shares, so they can never be brought into the common share market as supply.
Once again, I cannot overstate how excited I am about this Company, our exceptional base of loyal shareholders, and the promising path we have in front of us. I look forward to updating you again as we accomplish new milestones.
Jimmy Chan, CEO
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.
Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.