Sugamade Executes on Its Collaborative Cannabis Cultivation Strategic Model - Enters the 'Fresh Frozen' Cannabis Market via Contract Cultivation Contract with Cannabis Global, Inc.
May 04 2022 - 8:30AM
InvestorsHub Cannabis NewsWire
Sugamade Executes on Its Collaborative Cannabis Cultivation
Strategic Model - Enters the ‘Fresh Frozen’ Cannabis Market via
Contract Cultivation Contract with Cannabis Global,
Inc.
NEW YORK, NY
-- May 4, 2022 -- InvestorsHub NewsWire -- Sugarmade, Inc.
(OTC
Pink: SGMD) ("Sugarmade", "SGMD" or the "Company"), an emerging
leader in the licensed cannabis sector, today announces its first
transaction relative to its collaborative cannabis cultivation
strategy via a definitive and executed contract with Cannabis
Global, Inc. (OTC Pink: CBGL).
Under the
terms of the agreement, Sugarmade, via partner licensed and
permitted Lake
County, California, cannabis
cultivators, will produce approximately 25,000 pounds of "Fresh
Frozen" cannabis, which Cannabis Global, Inc. will use in its
product lines and will distribute to the California marketplace.
Fresh Frozen cannabis is cultivated to be immediately flash frozen
upon harvest instead of the traditional treatment of drying and
curing after harvest. The companies have signed a pre-booked,
fixed-price contract in the amount of $700,000, which will include
cash payments from Cannabis Global to Sugarmade of $300,000 and
notes for the balance of $400,000. Planting of the cultivators is
expected to begin in mid-May and continue into early
June.
Jimmy Chan,
CEO of Sugarmade, commented, "As we recently announced to our
shareholders, we see a strong business model of utilizing now idle
resources of other California cultivators who have decided they can
no longer afford to cultivate cannabis and market their biomass
into the marketplace. This new model will allow local Lake County,
California, cannabis companies to remain in business to do what
they do best - cultivate cannabis - while allowing Sugarmade to
concentrate on distribution and marketing of cannabis flower and
manufactured products."
The cannabis
strains for Cannabis Global's cultivation will be specifically
selected for attributes conducive to producing ultra-premium
solventless extracts and products based on live rosin and hash
concentrates. Upon harvest, all cannabis plants will be trimmed
with the best flowers immediately flash-frozen to preserve the
delicate oil-containing trichomes. This Fresh Frozen cannabis will
then be stored at ultra-low temperatures until processed via 100%
solventless extraction technologies.
"The market
for Fresh Frozen cannabis is snowballing. Thus we believe it is the
place to be for the 2022 cultivation season," commented Arman
Tabatabaeii, CEO of Cannabis Global. "We plan to process a large
portion of the 25,000 pounds of ultra-premium cannabis at our
Lynwood, California, laboratory, creating premium solventless
extracts for sale into the market and for use in our own
manufactured products, thus creating vertical integration to reduce
our costs of goods sold. We also plan to store a significant
portion of the biomass in the Los Angeles area to create an active
wholesale market to the many new solventless extractors in the area
via our wholly-owned distribution company, Northern Lights
Distribution. We have integrated this cultivation effort into our
strategic plan for 2022 and 2023 as an important component to
further boost our already fast-growing revenue base."
The trend
toward Fresh Frozen cannabis is being driven by consumer demand.
Many educated cannabis consumers are looking beyond ordinary high
THC products and seeking naturally produced cannabis products full
of natural plant terpenes and flavors. Not only is the market for
Fresh Frozen cannabis flower growing, but so is the category of
products based on the extracts produced from this form of cannabis
biomass. In many ways, the advent of fresh Frozen-oriented cannabis
cultivation has turned the cannabis cultivation model on its head.
Where cultivators traditionally harvested cannabis plants and then
spent weeks or months drying, curing and processing plant
materials, all the while battling heat, humidity, molds and other
factors that could affect the product, Fresh Frozen oriented
cultivation allows growers to ditch the traditional model by
cutting down the plants at the peak of freshness, stripping the
large leaves, branches and stems and then bagging the remaining
materials bound for storage in industrial freezers at temperatures
well below -5 F. With the rapid harvesting process, airtight
storage and near cryogenic storage temperatures, almost all of the
natural cannabis plant essence is preserved.
About
Sugarmade
Sugarmade,
Inc. (OTC
Pink: SGMD) is a product and branding marketing company
investing in operations and technologies with disruptive potential.
Our Brand portfolio includes CarryOutsupplies.com, SugarRush, NUG
Avenue, Lemon Glow and Budcars. For more information, please
visit www.Sugarmade.com.
FORWARD-LOOKING
STATEMENTS: This
release contains "forward-looking
statements" within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements also may be included in other publicly
available documents issued by the Company and in oral statements
made by our officers and representatives from time to time. These
forward-looking statements are intended to provide management's
current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to
be valid. They can be identified by the use of words such as
"anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "would," "could," "will" and other words of
similar meaning in connection with a discussion of future operating
or financial performance. Examples of forward-looking statements
include, among others, statements relating to future sales,
earnings, cash flows, results of operations, uses of cash and other
measures of financial performance.
Because
forward-looking statements relate to the future, they are subject
to inherent risks, uncertainties and other factors that may cause
the Company's actual results and financial condition to differ
materially from those expressed or implied in the forward-looking
statements. Such risks, uncertainties and other factors include,
among others, such as but not limited to; economic conditions,
changes in the laws or regulations, demand for products and
services of the company, the effects of competition, uncontrollable
forces of nature and other factors that could cause actual results
to differ materially from those projected or represented in the
forward-looking statements.
Any
forward-looking information provided in this release should be
considered with these factors in mind. We assume no obligation to
update any forward-looking statements contained in this
report.
Corporate
Contact:
Jimmy
Chan
+1-(888)-982-1628
info@Sugarmade.com
Investor
Relations Contact:
EDM Media,
LLC
https://edm.media
Corporate
Communications:
InvestorBrandNetwork
(IBN)
Los Angeles,
California
www.InvestorBrandNetwork.com
310.299.1717
Office
Editor@InvestorBrandNetwork.com
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