Sugarmade Acquires Los Angeles Property To Serve As New Nug Avenue Cannabis Delivery Hub

Sugarmade, Inc. SGMD reported Tuesday the closing of the Company’s acquisition of a property in Los Angeles that will serve as a new distribution/delivery hub for its Nug Avenue cannabis delivery segment.

This follows the company’s recent announcement that it has signed a memorandum of understanding to obtain three non-storefront California cannabis licenses from the LA Department of Cannabis Regulation, along with corresponding licenses from the California Bureau of Cannabis Control, which collectively will provide the licensing foundation for the opening of three new cannabis-related commercial operations in California.

The Company plans to assign one of these licenses, once obtained, to this newly acquired property, designated as a licensed cannabis delivery business under its Nug Avenue brand.

“We are very excited to announce the upcoming location of our new Nug Avenue delivery hub, which is in a prime position to serve the downtown LA area,” Jimmy Chan, CEO of Sugarmade said. “Our initial Nug Avenue location has been open for nearly six months and has established a strong brand with tremendous growth in membership – already exceeding 10,000 members and growing fast. Our remaining licenses can be applied to both expansion and verticalization of Nug Avenue operations as we continue to build a top-tier, farm-to-door leader in the California cannabis marketplace.”

In addition, Sugarmade also recently revealed its expansion plans in a letter to its shareholders. At the time, the company noted its plans to establish itself as a “vertically-integrated farm-to-door solution for cannabis consumers.” The company further announced plans to broaden its delivery reach, which launched in 2020 with in-demand service via its investment in Budcars. 

Price Action 

Sugarmade’s shares were trading 4.75% higher at $0.0021 per share on Tuesday mid-afternoon. 

Photo: Courtesy of CRYSTALWEED cannabis on Unsplash