Sugarmade, Inc. and Its Partner, Budcars, Discuss The Potential of On Demand Cannabis Delivery on The Stock Day Podcast
Phoenix, Arizona--(Newsfile Corp. - May 11, 2020) - The Stock Day Podcast welcomed Sugarmade, Inc. (OTCQB: SGMD) ("the Company"), a product and branding marketing company investing in operations and technologies with disruptive potential. CEO of the Company, Jimmy Chan, as well as the CEO of Budcars, Clinton Walker, joined Stock Day host Everett Jolly.
Jolly began the interview by noting that Indigo Dye Group is currently doing business as Budcars. "Why did Sugarmade and Indigo Dye Group decide to go into the on demand delivery market, and why California?" asked Jolly. "California still represents the biggest piece of the entire cannabis market in the United States," said Walker. "As far as 2020, there hasn't been a better time to enter into the on demand cannabis market," he added. "The main reason for the opportunity is due to the drift in state compliance that has been implemented," said Walker, noting that operating costs for licensed delivery would have been much more expensive in previous years.
The conversation then turned to the Company's partnership with Budcars, which began just a few months ago. "Our teams hit the ground running; they began working very well together, both Sugarmade and the Budcars teams. Right off the bat, we implemented a new point of sales software system," said Chan, adding that the teams were also able to expand their fleet of vehicles rapidly. "We were able to ramp up sales from half a million in annualized revenue to over three and half million in revenue today," he shared. "We anticipate the Sacramento location breaking ten million dollars in revenue by year end."
Jolly asked whether or not the Company provides the vehicles for their employees. "We have eight compliant vehicles that have been approved by the bureau of cannabis control to ensure that all products that are being delivered are not only compliant but are being delivered safely and effectively to all of our customers," said Walker.
"Where do you see Budcars one to two years from now?" asked Jolly. "We're in the process of opening three more locations throughout 2020," shared Walker. "We anticipate we'll grow to ten locations within twenty-four months," he added, noting that Budcars has the potential to cover 65% of the California market upon reaching ten locations.
"Why did Sugarmade and Indigo Dye decide to do a partnership within the cannabis on demand delivery market, and are you going to expand from California?" asked Jolly. "We're really focused on California initially," explained Walker, adding that Budcars may eventually decide to expand strategically as the opportunities arise.
"Did COVID-19 diminish or help your business?" asked Jolly. Walker shared that the pandemic has affected Budcars in both a positive and negative way. "It did boost sales, but we were forced to purchase vehicles at a rate 2x faster than we had anticipated," said Walker. "As COVID-19 has remained, our ability to serve thousands of clients has increased."
Jolly then inquired about the ownership structure between Sugarmade and Budcars. "Budcars is currently owned by Indigo Dye Group Corporation at 60%. Sugarmade has 40%, but it has the option to purchase a controlling stake for an additional 30% to make them the controlling owner," explained Walker. Chan added that Sugarmade and Budcars signed their agreement on February 15th of this year and began working together immediately.
To close the interview, Chan shared that the projects between Sugarmade and Budcars will be one of the Company's primary focuses over the next two years. Chan also discussed the Company's current valuation, which is experiencing the current lows of the cannabis market. "The only thing we can do is just focus on the core business itself. So, focus on the fundamentals, and as we build the company the market cap and the stock value will reflect eventually," said Chan. Meanwhile, the Company's sanitary supplies and non-medical protective supplies are experiencing a surge in revenue over the past couple of weeks. "We might be able to capture an additional ten million dollars in revenue on the supply side," closed Chan.
To hear Jimmy Chan's entire interview, follow the link to the podcast here: https://audioboom.com/posts/7578935-sugarmade-inc-and-its-partner-budcars-discuss-the-potential-of-on-demand-cannabis-delivery-on
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.
CarryOutSupplies.com specialized in Sanitary supplies and disposable take out supplies for the food service industry, we are all about having the assurance of quality products, competitive pricing and reliable customer service.
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.
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About The "Stock Day" Podcast
Founded in 2013, Stock Day is the fastest growing media outlet for Nano-Cap and Micro-Cap companies. It educates investors while simultaneously working with penny stock and OTC companies, providing transparency and clarification of under-valued, under-sold Micro-Cap stocks of the market. Stock Day provides companies with customized solutions to their news distribution in both national and international media outlets. The Stock Day Podcast is the number one radio show of its kind in America. Stock Day recently launched its Video Interview Studio located in Phoenix, Arizona.
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