Sugarmade, Inc. SGMD has announced the signing of definitive agreements related to the company’s expansion, including the establishment of majority ownership in a fully licensed new Hollywood cannabis delivery hub located on the world famous Sunset Strip as well as a minority stake in an expanding reservation-only restaurant brand with an adjacent private event space which will include cannabis consumption.
The location of the Delivery Hub and restaurant will be located on the world-famous Sunset Strip.
The company will also have majority ownership control over a brand-new cannabis retail distribution hub that provides delivery radius coverage in the affluent neighborhoods of the West Hollywood Hills.
This new delivery zone does not overlap with Sugarmade’s existing Los Angeles delivery footprint.
“This investment lands us on the ground floor of a new concept for cannabis distribution in the world’s biggest cannabis marketplace,” Jimmy Chan, CEO of Sugarmade, said.
Under the agreements, Sugarmade will take in one hundred percent (100%) of all profits from the new Delivery Hub until the Company has made back all its capital investment, after which time the Company will take in 51% of all profits from this Delivery hub location going forward.
In addition, Sugarmade teamed up with Boulevard Hospitality Group, known for operating Yamashiro, the iconic Hollywood Hills restaurant which is over 100 years old, to be its first choice provider of cannabis for BHG’s expansion into its future cannabis-only venues.
“Through these Agreements, we are simultaneously adding a new cannabis end market with future growth potential, doubling our delivery coverage in the LA metro area, and creating a new and more diversified revenue profile. We believe all of these steps represent strong potential drivers for shareholder value,” Chan added.
Recent Moves
- Sugarmade To Enter Rare Cannabinoid Market Via License Agreement For Patented THC-V Rich Chemovars
- Sugarmade Snags Licenses For 3 New Cannabis Delivery Hubs In L.A.
- Sugarmade Acquires Los Angeles Property To Serve As New Nug Avenue Cannabis Delivery Hub
Photo: Courtesy of Bench Accounting on Unsplash
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