Sugarmade Inc. (OTCMKTS:SGMD) has announced the signing of a binding letter of intent to acquire LemonGlow Company. The acquisition includes all Lemon Glow’s Property, assets, rights, and interests including, 640 acres of real estate in Lake Count, California, outside the Commercial Cannabis Cultivation Exclusion Zones.
Sugarmade to acquire Lemon Glow
According to the LOI, 32 acres of the Property will be designated for outdoor marijuana cultivation. Lemon Glow and Sugarmade management believe that the annual cultivation yield estimate at the Property will be around 4,000 dry trimmed cannabis flower per acre, translating to 128,000 pounds of dried cannabis flower per year.
The LOI indicates that Lemon Glow executives Ryan Santiago and Sammy Luu will be part of Sugarmade’s core management team at the cannabis cultivation site at the facility. They will continue with business operate under their three-year management contracts. So far, the core management team has over 30 years of combined cannabis cultivation experience.
Sugarmade has made a $400,000 deposit t in earnest money towards the completion of the transaction, and the company has 30 days to finalize the acquisition effective the date of LOI signing.
Sugarmade expanding in California
Sugarmade CEO Jimmy Chan said that, as discussed in the company’s recent corporate update, they are taking aggressive steps towards establishing full farm-to-door marijuana operations at scale in California. He said that the acquisition of lemon Glow is part of the company’s strategy to expand into the Californian cannabis market.
The company successfully opened its LA delivery hub, which is a massive development with the potential to boost topline growth because of the large market in the state. Chan said that the company’s focus is creating a vertically integrated supply chain that represents continued progress towards pushing bottom line growth which is the most effective way to reward shareholders directly.
Sugarmade acquired a 70% stake in Nug Avenue operations in February, which serves as a cannabis delivery services hub in LA. Nug Avenue has been working with Sugarmade for the past few weeks, and the results exceeded expectations.