• A “bear run” in California’s volatile wholesale cannabis market may be over
• “A wholesale turnaround would be welcome news for thousands of growers across the state
• SGMD operates Nug Avenue, a cannabis delivery service located in the Los Angeles metropolitan area

As wholesale cannabis prices increase in California, cannabis companies operating in the state are already seeing improvement (https://ibn.fm/HCYdn). One of those companies, Sugarmade (OTC: SGMD), 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.

“A bear run in California’s volatile wholesale cannabis market appears to be over,” reported an MJBizDaily article announcing that California wholesale cannabis prices were rebounding. “The price of bulk flower — which hit rock bottom in November and squeezed growers financially — is starting to rebound amid an uptick in sales, according to several operators who told MJBizDaily they closed the books last month on a high note.

“A wholesale turnaround would be welcome news for thousands of growers across the state, from craft producers in the Emerald Triangle to some of the nation’s largest cultivators in Santa Barbara County,” stated the article, which noted that prices began to drop nearly a year ago. “In addition to falling prices, many growers have been struggling because of a thriving underground market, high taxes and a limited number of retail outlets for their product.” 

The article quotes several growers who reported seeing “a modest rise in wholesale pricing” in January, which is in line with traditional seasonal spikes after big outdoor harvests that flood the market in October and November. “The average price per pound of cannabis flower is up to about $750 to $1,100 for quality, big buds and $300-$450 for smalls. . . . . That’s a nice bump from November, when prices bottomed out at roughly $400 per pound for AAA-grade flower amid a glut of marijuana.”

In the article, cannabis operators noted that they were seeing an increase in pricing and uptick in sales, which is very promising entering the new yea; the article also observed that consumer demand was driving higher-quality product. 

Sugarmade currently operates Nug Avenue, a cannabis delivery service located in the Los Angeles metropolitan area. The location opened in March 2021 and by the end of June 2021, it had more than 10,000 unique members (https://ibn.fm/1lZLa). That growth has continued, and the company now has nearly 25,000 unique members, with plans for a second location underway and other locations being explored. 

In addition, SGMD has implemented new cannabis delivery technology to establish a competitive advantage in its core delivery zone: the Onfleet last-mile delivery solution with Blaze. And Sugarmade is finalizing plans for its first planting at the large 640-acre outdoor cultivation site associated with its recently acquired Lemon Glow subsidiary; the company believes all necessary approvals will be in place in time for the 2022 planting season.

Sugarmade is a product and branding marketing company investing in operations and technologies with disruptive potential. The company’s 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://ibn.fm/SGMD

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