Sugarmade Inc. SGMD issued Tuesday a letter to its shareholders detailing plans to establish itself as a “vertically-integrated farm-to-door solution for cannabis consumers.”
Sugarmade also plans to broaden its delivery reach, which launched in 2020 with in-demand service via its investment in Budcars (pictured).
What’s more, the company will verticalize its model to form “a full farm-to-door structure that expect to produce high-quality branded cannabis products positioned in a vertical in-house supply chain.”
Verticalization is expected to allow Sugarmade to utilize 280e tax deductions connected to production.
These moves should help the company attain “optimal margins.”
Sugarmade offers the supply services of consumable products to specific restaurants, and the import services of non-medical personal protection equipment to both businesses and consumers. It has invested in the Budcars licensed cannabis delivery service brand, and owns Budcars’ first running location in Sacramento, California.
The company also has plans to open new hubs in Los Angeles.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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