Cannabis Global Signs Partners With Sugarmade's BudCars Delivery Service

Cannabinoid and hemp extract company Cannabis Global Inc. MCTC confirmed Wednesday the licensing of a few patent-pending technologies to BudCars Cannabis Delivery Services, in conjunction with Sugarmade Inc. SGMD.

The licensing is for the purpose of use in cannabis edibles for the legal cannabis market in California.

Under the agreement, Cannabis Global Inc will license its original cannabinoid infusion procedures that would be further used by BudCars for the manufacture of bioavailable cannabis edibles.

"We have developed and have pending patents on several technologies that not only make the production of cannabis edibles less expensive but also improve product quality,” Cannabis Global CEO Arman Tabatabaei said in a statement.

In addition to rolling out its own hemp-oriented product lines utilizing these technologies, Cannabis Global is looking to leverage these developments via licensing arrangements to manufactures within the regulated cannabis markets. 

Cannabis Global noted it has recently filed six patents on delivery systems and cannabinoid extract methods.

Jimmy Chan, CEO of Sugarmade, also praised the partnership.

“This will allow BudCars to produce ultra-premium products for its growing customer base," Chan said. "Second, this agreement is an important additional step relative to opportunistic margin expansion opportunities for BudCars through selective vertical integration and brand internalization."

The agreement allows BudCars to expand its marketing efforts in the fast-growing cannabis edibles sector, Chan explained.

"While sales across the board for BudCars have been up significantly since the COVID-19-related stay at home orders, sales of edibles have been especially strong," he added.

Chan also published a shareholder letter detailing Sugarmade's expectations, predicting the company will surpass its $10 million annualized revenue target before August. Other goals include opening up two new locations and put BudCars on a pace to "reach and surpass $30 million in annualized revenues by year end."

Photo courtesy of Sugarmade