Sugarmade Inc (OTCMKTS:SGMD) continues its upwards journey on Thursday. The stock has been nice uptrend over the past week with a jump of 40%.
Major Trigger:
Sugarmade Signs MOU to Acquire Three California Cannabis Licenses, Plans Large-Scale Nug Avenue Expansion in World’s Premier Cannabis Market
Key Highlights:
- announced the signing of a Memorandum of Understanding (the “MOU”) to obtain three non-storefront California Cannabis licenses from the Los Angeles Department of Cannabis Regulation (the “DCR”), along with corresponding licenses from the California Bureau of Cannabis Control (the “BCC”), which collectively provide the licensing foundation for the opening of three new Nug Avenue cannabis delivery hubs in the Los Angeles metro area.
- According to the terms of the MOU, the Company will control a joint venture created with the initial holder of the social equity license as of the closing date of the definitive agreement.
- Each of the three licenses can be used for three of the five categories of licensed cannabis-related business activities allowed under the terms of these licenses: retail delivery, manufacturing, distribution, transport-only and cultivation. The Company has determined it will most likely use each license for a combination of 1) retail delivery of cannabis products, 2) supply chain distribution of cannabis products, and 3) for manufacturing/packaging of cannabis products.
Market Reaction
As of 12:28, SGMD stock surged by 29% to $0.0035 with more than 60.16 million shares traded hands, compared to its average volume of 91.63 million shares. The stock has moved within a range of $0.0028 – 0.0039 after opening the trade at $0.0029.
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