Sugarmade Inc (OTCMKTS:SGMD) shares were down 6.64% to $0.0398 on Thursday and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.04 to $0.42. The company has a market cap of $8.49 million at 213.49 million shares outstanding.
In a press release, Sugarmade Inc shared that it expects a flood of cannabis to come to market and demand to be off the charts. Recall that the company has teamed up with Plantation Corp to develop BudLife, the first patented, container system expected to maintain the integrity of cannabis during long-term storage.
BudLife products are designed to significantly reduce this risk and to allow growers and distributors to store and control the release of their higher quality products at optimal times in order to maximize profits.
“We are very excited about the recent successes in the lab, which we believe will allow us to begin production during the fourth quarter of this year, just in time for the coming California market for which we hold exclusive license,” commented Mr. Jimmy Chan, CEO of Sugarmade Inc. “We are now in our 4th generation of prototypes and we have been able to maintain the controlled vessel environments for several months. This meets a major milestone in our developmental efforts. We look forward to starting marketing of the products.”
He added that the quality of cannabis has risen dramatically over the past few years and it’s clear that premium product keeps consumers happy and allows growers and distributors to command premium prices. However, he also noted that the quality of cannabis degrades quickly, which places the significant investments made in high quality product production at risk.
Sugarmade Inc is a company that is engaged in the supply of products to the quick service restaurant sub-sector of the restaurant industry. It is a distributor of paper products derived from non-wood sources.
As of June 30, 2015, the Company’s operating unit, CarryOutSupplies.com, which is a producer and wholesaler of custom printed and generic takeout supplies served more than 3,000 quick service restaurants. It conducts its operations in an industry segment, including paper and paper-based products, such as paper cups, cup lids, food containers and others.
Its products also include double poly paper cups for cold beverage, yogurt cups, ice cream cups, soup containers and plastic spoons. It is a manufacturer and distributor of tree free copy and printer paper products, made from sugarcane waste (bagasse) and bamboo for home and office environments under the Sugarmade brand name. It has also acquired a minority stake in various patents and products for seasoning and spices for food items.