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Sugarmade Inc. (SGMD) Subsidiary Obtains Permit, Takes Key Step Toward Commercialization

  • SGMD’s Lemon Glow receives conditional use permit number from county
  • Sugarmade’s seed-to-door vision separates the company from other players in the California cannabis marketplace
  • Estimated for Lemon Glow property could reach as much as 64 tons of dry trimmed cannabis flower annually

Sugarmade (OTC: SGMD) is making significant progress toward its end goal of becoming a central play in the growing California cannabis space. The company announced that its wholly owned subsidiary, Lemon Glow Company, has received a conditional use permit (“UP”) number from the Community Development Department of the County of Lake, California (https://cnw.fm/Weujn). The permit, noted Sugarmade, is an important step toward the conditional use permit for commercial cannabis cultivation at its property.

“We are excited to see the process moving forward for our Lemon Glow property, which represents an important strategic asset as we further verticalize our overall model,” stated Sugarmade CEO Jimmy Chan. “Our vision is ‘seed to door,’ which would separate us from other players in the California cannabis marketplace, given that we have already established a leading and growing presence in the cannabis delivery market and have set in motion a process to control our own supply chain. Ramping up our cultivation resources is a significant step in fully leveraging a vertical model to drive shareholder value through margin gains.”

Sugarmade has been focused on achieving its seed-to-door vision. Earlier this year, the company signed a definitive agreement outlining the acquisition of Lemon Glow Co., including all assets, interests, rights and property; the property acquisition included 640 acres in Lake County, outside of the Commercial Cannabis Cultivation Exclusion Zones (https://cnw.fm/97wkv).  The announced merger closed in May 2021. 

SGMD noted that the annual potential cultivation yield at the Lemon Glow property could reach as much as 4,000 pounds of dry trimmed cannabis flower per acre annually, or approximately 128,000 pounds, or 64 tons, of dry trimmed cannabis flower annually. In order to reach those estimated, the necessary approvals and permits need to be obtained, including approval to designate 32 acres of the 640-acre Lemon Glow property as outdoor cannabis cultivation. 

With the conditional UP number in hand, Sugarmade is now turning its focus to the next steps necessary in order to achieve its strategic goals. “While [we believe] that the issuance of the conditional UP number by Lake County is an important step toward full approval to cultivate cannabis on the property, the company must still gain approval from other local and state regulatory authorities in California,” the company noted in the announcement. “Furthermore, the issuance of the conditional use permit number by the County of Lake allows the company to proceed with a state cannabis cultivation license application and applicable permits, such as those from the Department of Cannabis Control, the Department of Food and Agriculture, the Department of Pesticide Regulation, the Department of Fish and Wildlife, the State Water Resources Control Board, the Board of Forestry and Fire Protection, the Central Valley or North Coast Regional Water Quality Control Board, the Department of Public Health, and the Department of Consumer Affairs, as may be required.”

Sugarmade has set its eyes on expanding its end-market access as a central player in the growing California cannabis delivery marketplace while also developing its in-house cannabis production capacity to verticalize operations in the space. Through a combination of organic growth and strategic acquisitions, Sugarmade is working to develop a full farm-to-door vertically integrated cannabis business. The company’s brand portfolio includes CarryOutsupplies.com, SugarRush(TM), NUG Avenue, 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

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