Sugarmade Inc’s (OTCMKTS:SGMD) Stock Gains Momentum After Securing Cultivation Facility
When it comes to making profits in the stock market, one of the most important things that investors need to remember is that he needs to be aware of the latest news. The latest news ultimately can lead to a large number of moves in the market. That brings us to the subject of Sugarmade Inc’s (OTCMKTS:SGMD) stock, which has managed to record enormous gains over the course of the past three trading sessions and could soon be on the radars of the majority of investors.
Secures Cultivation Facility Worth Up to $1.6M
Sugarmade is a marketing company involved in different products and brands. In addition to that, the company is also known for investing in disruptive technologies and operations.
This morning, the company made a major announcement, and that was one of the reasons behind the continued rally in the stock. Sugarmade has gained as much as 70% over the course of the last three trading sessions, and it remains to be seen if it can record further gains today. Sugarmade announced today that it is going to submit an application to the California Bureau of Cannabis Control by way of which Sugarmade is going to move into cannabis cultivation.
The company has made this move so that it can make its BudCars’ business model somewhat vertical. BudCars is a cannabis delivery business owned by the company.
In its press release regarding the development, Sugarmade stated that the company’s management believes that such a move is going to help in boosting gross profitability over the long term. Additionally, it could also provide a swift path to developing branded products. It is an ambitious move from Sugarmade, and it should also be noted that the company has already managed to acquire a premium cannabis indoor cultivation plant that spans over an area of 5000 square feet. Jimmy Chan, who is the Chief Executive Officer of Sugarmade, stated that BudCars is a business with high growth and also generates high margins. However, the company will benefit substantially through vertical integration. He went on to state that Sugarmade already is connected to the end consumer, and in addition to that, the company also possesses experience in cultivation. Hence, the move is supposed to help Sugarmade in connecting different aspects of BudCars’ business.
The company also notified in its press release that considering the market rate of cannabis is currently $14.28 per gram in Sacramento; the new indoor cultivation facility could potentially produce output worth $1.6 million for BudCars.
Back on June 16, the company announced that its BudCars Cannabis Delivery Service managed to generate record gross profits and gross margins for the sales that it made in the month of May. Sales grew 46% from the previous month, and in June so far, week on week gross profits have grown by 9.9%.
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