- Cannabis-delivery acquisitions increasing as companies want in on explosive growth of e-commerce cannabis sales
- CEO announces newly acquired property will serve as location of new SGMD Nug Avenue delivery hub
- Sugarmade signed MOU for licenses to serve as essential piece of plan to open three cannabis-related commercial operations in California
Amid growing interest and acquisition activity in California’s direct-to-consumer cannabis delivery sector, Sugarmade (OTC: SGMD) has closed on its most recent acquisition, a parcel of prime property in Los Angeles, which it plans to use as a new distribution/delivery hub for its Nug Avenue cannabis delivery segment (https://cnw.fm/50vhI).
“The explosive growth of e-commerce during the COVID-19 pandemic has propelled new interest in acquisitions involving direct-to-consumer cannabis delivery,” reported a recent MJBizDaily article (https://cnw.fm/m33B6). “Some marijuana companies have acquired delivery-only cannabis dispensaries, while others have spent more to acquire vertically integrated MJ firms with home-delivery operations included.
The article noted that companies involved in recent delivery-related acquisitions have said that the deals help them quickly access an existing base of loyal delivery customers, gain delivery expertise to apply to their existing operations and leverage delivery assets in other U.S. markets. “I think these M&A transactions are a part of a bigger phenomenon, which is the growth of delivery. It’s one way to achieve that – you acquire it,” the article quoted investment banker Frank Columbo as saying. Columbo is director of data analytics at Viridian Capital Advisors, which tracks capital raises, mergers and acquisitions in the cannabis sector.
“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,” said Sugarmade CEO Jimmy Chan. “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.”
Prior to closing on the acquisition of the LA property, Sugarmade signed a memorandum of understanding to obtain three nonstorefront California cannabis licenses from the Los Angeles Department of Cannabis Regulation, along with corresponding licenses from the California Bureau of Cannabis Control. Combined, these licenses provide an essential piece of SGMD’s strategic plan to open three new cannabis-related commercial operations in California. According to the announcement, the Company intends to use one of the licenses, once obtained, to this newly acquired property in LA; the company will designate it as a licensed cannabis delivery business under its Nug Avenue brand.
Sugarmade is a product and branding marketing company investing in operations and technologies with disruptive potential. In addition to its financial interest in the BudCars brand, SGMD’s brand portfolio includes Nug Avenue, CarryOutsupplies.com, SugarRush(TM), Lemon Glow and BudCars.
For more information, visit the company’s website at www.Sugarmade.com.
NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://cnw.fm/SGMD
CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.
To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.cannabisnewswire.com
Do you have questions or are you interested in working with CNW? Ask our Editor
CannabisNewsWire is part of the InvestorBrandNetwork.