CannabisNewsAudio – Cannabis Strategic Ventures, Inc. (NUGS) Increases Harvest Size to Meet Rising Demand Amid COVID-19 Pandemic

COVID-19 has devastated most businesses but created a surge in cannabis sales—a trend that’s likely to continue.

Strange bedfellows, COVID-19 and cannabis. As the pandemic wreaked havoc on the U.S. and global economies, cannabis sales rocketed higher across multiple markets in North America. California cannabis sales soared nearly 160% compared to the same day in March 2019, while sales in Washington rocketed 100% and Colorado saw a 46% increase on the same day. This surge doesn’t appear to be a flash in the pan either. An emerging leader in the U.S. cannabis marketplace, Cannabis Strategic Ventures (OTCQB: NUGS) (NUGS Profile), is now on pace for over $2.7 million in quarterly sales and approximately $11 million in annualized sales, based on its strong performance in April and May. Simultaneously, the company increased its harvest size by as much as 2.5x and is now selling product at an 11% premium to industry standard. Like any industry, the real winners in the cannabis markets are tied to sales and earnings growth. Canopy Growth Corporation (NYSE: CGC) has continued to release new products for a variety of markets while attracting significant investment from the beverage sector. Cronos Group Inc. (NASDAQ: CRON) has continued to work on expanding its international reach. With a similar focus on growth, Aurora Cannabis Inc. (NYSE: ACB) has acquired another company to expand its reach from Canada into markets in the United States. Organigram Holdings Inc. (NASDAQ: OGI), whose business was initially disrupted by COVID-19, has begun a phased return to work and almost immediately announced the release of new products, making the most of continuing consumer demand.

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About Cannabis Strategic Ventures

Cannabis Strategic Ventures Inc. (OTC: NUGS) is one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops and partners with category leaders within the cannabis and ancillary sectors. The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing cannabis consumer brands. For more information, visit www.CannabisStrategic.com.

NOTE TO INVESTORS: The latest news and updates relating to NUGS are available in the company’s newsroom at http://cnw.fm/NUGS

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COVID Spikes a Tsunami of Cannabis Sales

CannabisNewsWire Editorial Coverage: COVID-19 has devastated most businesses but created a surge in cannabis sales—a trend that’s likely to continue.

Click here to view the custom infographic of the Cannabis Strategic Ventures (OTCQB: NUGS) editorial.

Winners and Losers in the COVID Crisis

COVID-19 has had a devastating impact on most businesses. Shops and restaurants forced to close, manufacturers unable to operate their plants, companies across the manufacturing and service sectors seeing demand plummet. The layoffs and losses are very real, and no one knows yet what the long-term economic impact will be.

But some businesses actually benefited from the economic disruption the pandemic has wrought. There are obvious ones like pharmaceutical companies and those producing protective equipment for medical staff. There are the tech businesses that facilitate working from home, providing software for virtual workspaces and online meetings. And there has been a huge increased demand for home entertainment, which has spilled over into a less obvious sector – cannabis producers such as Cannabis Strategic Ventures (OTCQB: NUGS) (NUGS Profile).

Cannabis Business Booms

Cannabis was already a boom industry in North America. This has been driven by a range of recent changes, such as recreational legalization in Canada, federal legalization of hemp in the US, and the repeal of prohibition across a growing number of states. This trend has allowed the growth of companies such as Cannabis Strategic Ventures, which cater to a growing market as customers move from criminal supply channels to legal ones.

Demand exploded during the early stages of COVID-19’s spread through North America. According to the Bank of America Securities, there were record sales of cannabis as consumers stockpiled, preparing for a lockdown. While some people bought mountains of toilet paper or tinned food, both medical and recreational cannabis users were making sure they had enough to see them through a crisis.

The result was a spike in sales in April and May to the benefit of companies with recognizable quality products gleaned from operational efficiencies such as Cannabis Strategic Ventures. Sales could have been stymied as states locked down and restricted business to control the spread of COVID-19. But most states classified cannabis as an essential product, allowing sales to continue even as other parts of the economy were shutting down.

Together, these factors led to record sales for some cannabis companies, with Cannabis Strategic Ventures celebrating increased sales of cannabis product from its core cultivation facility and adding staff to address the rising demand.

A Strong Player in the Cannabis Market

These sales marked an extraordinary month for NUGS. Despite restrictions on business due to COVID-19, the company had record-breaking sales in the final week of April, putting monthly sales 800% higher than the monthly average for Q1.

Any fears that this might be a blip caused by panic buying at the start of the pandemic vanished the following month, when the company announced sales from its most recent harvest. With cannabis sales in the US average roughly $1,525 per pound, the company sold its product at around $1,700 per pound—11% above benchmark levels. This was a particularly impressive price given that it had been selling at a discount relative to the benchmark only six months before.

Of course, not all cannabis companies will benefit from the crisis. Their ability to profit depends in large part on the strength of their existing business. NUGS had been building up its business prior to the crisis, with the addition of a six-acre cultivation site in 2019, capable of four or five harvests per year.

Seizing the market opportunity brought by COVID-19, the company has announced further improvements in the first half of 2020. Work on both the quantity and the quality of output has more than doubled the output of cultivation facilities while supporting rising prices for its products.

An Expanding Industry

The long-term expansion of legal markets has led to dramatic growth for cannabis companies over the past decade, and the COVID-19-related influx of revenues provides well-run businesses the resources they need for further expansion. Late April and early May saw Cannabis Strategic Ventures sell out its entire stock every week for a month.

“We have never seen anything like this,” said Cannabis Strategic Ventures CEO Simon Yu. “We booked $100,000 in one day to clear out all of our remaining inventory. We anticipated this dynamic but still underestimated the force of the trend. Too much demand is always the problem you want to have.”

NUGS sold $929,000 of cannabis products in May and expects to see even greater sales in June. Expanded inventory and product range have supported this growth even in a time of crisis, while reinvestment from that growth will let the company further expand its capacity.

Part of the sector’s success comes from producing a varied range of brands and products. Rather than just selling weed, the more successful companies have been developing a variety of cannabis derivatives for different markets. While the recent boom in sales has come from demand for cannabis itself, related brands have diverse interests in supporting long-term growth of the market, normalizing cannabis and its derivatives as consumer products, and protecting companies against a disruption in any individual part of the market.

Cannabis Companies Riding Out a Crisis

The boom in sales brought about by the COVID-19 crisis has created an opportunity for a range of growing companies.

Canopy Growth Corporation (NYSE: CGC) is a leading diversified cannabis, hemp, and cannabis device company, with a range of brands and cannabis varieties sold in dried, oil and gel capsule forms. It has gained in strength largely through its diverse range of products and brands, which it has continued to grow during the COVID-19 crisis, with the recent announcement of new cannabis packages, infused drinks, chocolates, and vaping components. The company made news in 2017 when it received substantial investment from Constellation Brands, a leading beverage company, and Constellation has recently added to that investment by purchasing further shares – a sign of big business’s faith in the cannabis market in general and Canopy Growth in particular.

With development and distribution spread across five continents, Cronos Group Inc. (NASDAQ: CRON) is tapping into the international potential of the cannabis market. The company is focused on building disruptive intellectual property by advancing cannabis research, technology and product development. Cronos saw a year-on-year rise in revenues in Q1 of 2020, despite some losses, and has been working to expand its international reach. It has adapted to the COVID-19 crisis by moving its annual shareholder meeting online, allowing full participation without the infection risks that currently come from large gatherings.

Canadian-based Aurora Cannabis Inc. (NYSE: ACB) serves both the medical and consumer markets, working as a pioneer in global cannabis to help people improve their lives. The company’s brand portfolio includes Aurora Drift, Daily Special, MedReleaf, and ROAR Sports. It will be expanding its lines with the recently announced acquisition of American company Reliva, which will provide Aurora with a top-ranked hemp-derived CBD brand currently sold in over 20,000 mass retail locations in the US.

Organigram Holdings Inc. (NASDAQ: OGI) produces high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend its global footprint. Though its work was initially disrupted by COIVD-19, in mid-May the company announced the first phase of a return to work. The company has quickly gotten back to expanding its business, with the announcement of new product releases for medical consumers.

COVID-19 caused serious disruption for most businesses but spurred a revenue spike in the cannabis industry, creating a substantial opportunity in an already expanding sector.

For more information on Cannabis Strategic Ventures, please visit Cannabis Strategic Ventures (OTCQB: NUGS)

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CannabisNewsAudio – Sugarmade, Inc. (SGMD) Contributes to the Thriving Kentucky Hemp Market

Related Editorial
Hemp may be taking the first steps to overtake tobacco as a leading industry in Kentucky.

Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile) is among the companies moving into Kentucky, with a million-dollar investment in hemp growth. Hemp’s national prominence is growing through deals such as Aurora Cannabis Inc.’s (TSX: ACB) (NYSE: ACB) collaboration with United Fighting Championship (UFC). Research work by Tilray Inc. (NASDAQ: TLRY) may involve using hemp to treat a growing range of physical and mental ailments. Curaleaf Holdings Inc. (OTCQX: CURLF) (CSE: CURA) is serving states without a strong, homegrown hemp industry, such as Florida. In addition, companies across the cannabis sector, such as Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON), are diversifying their product ranges as more hemp crops come online.

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About Sugarmade Inc.

Sugarmade Inc. is a product and brand marketing company investing in products and brands with disruptive potential. For more information, visit the company’s website at www.Sugarmade.com.

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Hemp Set to Overtake Tobacco in Kentucky Amid Boom for Growers, Suppliers

CannabisNewsWire Editorial Coverage: Hemp may be taking the first steps to overtake tobacco as a leading industry in Kentucky.

Once the hemp heartland of the United States, Kentucky is rebuilding this lost industry following recent legislative changes.
Both tobacco farmers and specialist hemp companies are contributing to the boom.
The trend appears to also be profitable for companies providing support services, such as CBD extraction and hydroponic supplies.

To view an infographic of this editorial, click here.

A Surprising State

In some ways, Kentucky is a surprising place to see a hemp boom. Conservative lobbyists in the state have consistently resisted legalization measures for related plants, despite the wider growth of the industry. Given the “thin end of the wedge” arguments wielded against drug reform, the hemp industry might have expected to face a cold response in the state.

Yet the state’s hemp sector has deep roots. During the 19th century, Kentucky was the largest producer of hemp in the United States, producing three-quarters of the nation’s hemp fiber. As hemp production went into decline following the First World War, tobacco took its place as a major cash crop for the state. However, tobacco now faces challenges of its own. With hemp production made legal on a federal level for the first time in nearly half a century, Kentucky has once again emerged as the country’s leading manufacturer.

Overtaking Tobacco

Kentucky has become a go-to state for companies with an interest in hemp, such as Sugarmade Inc. (OTCQB: SGMD).

Since federal legislation allowed the production of hemp at test sites in 2014, Kentucky has taken a leading role in the industry. The Bluegrass state was one of only three states to exceed 100 acres by 2016, and research permits were issued for more than 12,000 acres in 2017. By the time the 2018 farm bill proposed the legalization of hemp across the United States, Kentucky hemp growers were becoming a powerful lobby. They won the support of the state’s politicians, helping to push national legislation through in December.

Sugarmade’s involvement in Kentucky comes through, at least in part, a million-dollar investment in Nevada-based Hempistry Inc. Hempistry has begun growing high-grade hemp on a 23,000-acre land option it holds in Kentucky. High in cannabidiol (CBD), an active ingredient in high demand for wellness products, this hemp offers a chance to maximize earnings from the land and set down roots for larger operations in the state.

Commentators watching the development of hemp in Kentucky have speculated that plant could overtake tobacco, once the state’s leading cash crop. A growing number of savvy tobacco farmers have started growing hemp on part of their land, hedging their bets against the decline in tobacco sales. Hemp certainly appears to be a natural alternative to tobacco for these farmers, as it can be grown in similar conditions and sold into related markets.

Consequently, the Kentucky hemp industry is already turning into a large and diverse one, driven by two separate trends. One is the need of farmers for new crops, as declining tobacco sales and the pressure of trade wars impact their profits. The other is the emergence of companies with a focus on hemp and related crops, such as Sugarmade. These companies provide specialist tools and invaluable knowledge, while the farmers bring decades of experience growing crops in the region. Old and new knowledge combine to build a booming industry.

Looking to buoy up the economic health of their state, Representative James Comer and Senator Mitch McConnell have pushed the hemp agenda at a national level, creating the space for Kentucky’s hemp industry to thrive. McConnell has been particularly crucial, using his position as majority leader to advocate for hemp reform, including publicly reinforcing his support for the industry through a tour of the state with Sonny Perdue, head of the U.S. Department of Agriculture (USDA). With this growing federal support, Kentucky hemp growers appear to be making long-term investments, confident that politicians will ensure a friendly business climate.

Providing the Fundamentals

Of course, it takes more than political goodwill to make an industry grow. Suppliers providing tools and materials to support the fundamental activities involved in the industry are crucial. This need is what attracted Sugarmade to the industry and is still the bedrock of the company’s hemp strategy.

Sugarmade entered the hemp space as a supplier of hydroponic equipment. Hydroponics are essential to the hemp market. While some hemp is grown outdoors, much is grown indoors, where greater control can be asserted over growing conditions. Hydroponic systems are used for this indoor agriculture, and Sugarmade supplies some of the best available systems available. In addition, the company is looking forward, exploring the use of artificial intelligence to monitor crops and ensure the best growth.

Agricultural supplies are one of the bottlenecks in the hemp industry. The sector has grown so quickly that suppliers have struggled to keep up. These circumstances have created what appear to be ideal conditions for Sugarmade, as demand for its core products seem to be all but ensured, allowing the company to expand by acquiring other firms. This savvy pick-and-shovel strategy has taken Sugarmade beyond its original strategy and into the Kentucky cultivation sector through the investment in Hempistry.

Supplying producers has given Sugarmade space to diversify. In addition to hydroponics, SGMD now sells extraction equipment. This is used by hemp growers or specialist processing companies to extract the CBD from hemp, so that it can then be sold to manufacturers as a raw ingredient. Sugarmade’s future plans include the introduction of new types of processing machines, aimed to keep the sector innovating and moving forward and also strengthen the company’s position as a leader in the space.

Subsidiary services such as extraction are one more reason why hemp may grow in importance to surpass tobacco. These services provide extra forms of employment and an extra boost for a state such as Kentucky. The state’s workers and tax base benefit not just from hemp farming but also from agricultural supplies, processing businesses and the entire supply chain of hemp and CBD products, a chain that looks set to only expand as the industry continues to see extraordinary growth.

The Hemp Boom

Big players from related industries are also making use of hemp to broaden what they offer as well.

Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) recently acquired Hempco Food and Fiber Inc., a company it has been investing in since 2017. This provides Aurora with a high-volume supply of raw hemp from which it can extract cannabidiol for use in a wide range of products. The company is also working to raise the profile of hemp and find new ways to use the it. At least part of these efforts are being accomplished through a partnership with mixed martial arts company UFC. Aurora’s products and discoveries are designed to be used to help UFC athletes manage pain relief, tackle muscle strains, and enjoy the rest and relaxation they need between fights. As well as drawing attention to Aurora and hemp, the collaboration may prove invaluable insight into what CBD can do for professional athletes.

A pioneer in the use of cannabinoids, Tilray Inc. (NASDAQ: TLRY) is a company with a heavy focus on research, contributing to studies around the world. The company has recently gained permission from the U.S. government to import CBD to the states for clinical trials at the NYU School of Medicine. These studies will explore the effectiveness of CBD in treating patients suffering from Alcohol Use Disorder (AUD) and AUD with Post-Traumatic Stress Disorder (PTSD).

While regions such as Kentucky are seeing a hemp boom, others have yet to see such growth and remain underserved for CBD products. Curaleaf Holdings Inc. (OTCQX: CURLF) (CSE: CURA) is focused on these areas, taking the opportunity provided by unmet demand. States such as Florida, Massachusetts, New Jersey and New York have limited licensing and large populations, making them ideal settings for this strategy. Curaleaf is about to open its 26th dispensary in Florida.

Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is working to strengthen its position in the hemp market through the recently completed acquisition of four subsidiaries of the Redwood Holding Group. This adds a range of hemp-derived consumer products to Cronos’s lines, giving it more prominence in the market.

The hemp boom isn’t limited to Kentucky, but with growing political and corporate support, the state appears set to return to its former place as the U.S. hemp leader.

For more information on Sugarmade, visit Sugarmade Inc. (OTCQB: SGMD)

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CannabisNewsAudio – Sugarmade, Inc. (SGMD) Providing Hydroponics to Flourishing Hemp Market

Related Editorial
With a powerhouse economy worth more than $3 trillion, California’s economy ranks as the fifth largest in the world. Current legislation is expected to pave the way for the state’s hemp market to explode.

With a series of smart acquisitions and brand expansions, Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile)appears to be a strong pick-and-shovel presence as California looks at passing hemp-friendly legislation. Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) just announced a new hemp-based acquisition, while Greenlane Holdings Inc. (NASDAQ: GNLN) and The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) (TGOD Profile) have both inked deals that strengthen their presence in the hemp industry as well. KushCo Holdings Inc. (OTCQX: KSHB), another industry supplier, just created a new sales division aimed at mass distribution, industry education and compliance, and building CBD-brand distribution networks.

To hear the CannabisNewsAudio version, visit http://cnw.fm/od3lR

To view the full editorial, visit http://cnw.fm/H5kno

About Sugarmade Inc.

Sugarmade is a product and branding marketing company investing in operations and technologies with disruptive potential. The company is becoming a leading supplier to the growing hemp and cannabis industries as a non-plant touching provider of cultivation and processing supplies to industry players. The company is in the process of acquiring several leading hemp and cannabis supply companies that are currently producing in excess of $70 million in annual revenues. Sugarmade is also an investor in fast growing Hempistry, Inc., a Kentucky-based cultivator and processor of industrial hemp and hemp distillates and isolates, and operates Carryoutsupplies.com a leader provider to the quick service restaurant industry. 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://cnw.fm/SUGAR

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Passage of California Assembly Bill Expected to Spur More Growth in the Hemp, CBD Markets

CannabisNewsWire Editorial Coverage: With a powerhouse economy worth more than $3 trillion, California’s economy ranks as the fifth largest in the world. Current legislation is expected to pave the way for the state’s hemp market to explode.

Pending California legislation could rewrite hemp demand in California, whose economy ranks as fifth largest in the world.
A more welcome legal environment is expected to create significant additional demand in the marketplace.
Sugarmade’s careful strategy may place the company in an ideal position as the industry prepares for change.

To view an infographic of this editorial, click here.

Legislation Could Warm Up State’s Hemp Market

No state has had a bigger impact on the growth of consumer hemp and CBD products than California. But the Golden State may just be getting warmed up relative to hemp and CBD consumption. Current state legislation — Assembly Bill 228 — could rewrite the hemp demand equation for farmers and industry supplies across the entire United States.

While California has been liberal relative to cannabis legalization, state regulators have been downright prudish relative to allowing hemp cultivation and the use of CBD added to food and beverages. This attitude could all change soon as California’s state senate has until September 15, 2019, to pass AB 228. The legislation, which clarifies the statues of CBD in foods and drinks, passed with a unanimous vote in California’s Assembly, and California Gov. Gavin Newsom is widely expected to sign the bill into law, making the legislation effective immediately.

Hydroponics Critical Link in Hemp Cultivation

The California market fully opening to CBD in food and beverage is expected to create significant additional demand in the marketplace. Not only will consumer brands benefit but so too will cultivators and those companies that supply the industry, including companies such as Sugarmade Inc. (OTCQB: SGMD).

Sugarmade is a brand development company with a focus on providing hydroponics to the burgeoning hemp market. That’s why companies such as Sugarmade are a critical link in the hemp-farming process. Essential to growing consistent, high-grade hemp, hydroponics provides critical lighting equipment necessary to control photosynthesis, specialized nutrient mixes to provide plants with the food they need, and measurement solutions and environmental controls used by staff to measure, monitor and control the quality, strength and health of the plants.

Companies with expertise in hydroponics are essential in the hemp-industry supply chain, but because of the previously restricted market, these companies have been relatively small. All that is changing as numerous companies look to meet the needs of the growing hemp market, and Sugarmade appears set to become a leader among these companies.

Sugarmade’s calculated strategy entails deliberate growth on two fronts: organically by brand expansion and through acquisitions. Sugarmade has been working on a handful of deals that provide it with key components that may place the company in an ideal position as the industry prepares for change, especially in California.

“Sugarmade plans to integrate these businesses fully as soon as is possible, making us one of the larger suppliers to this growing marketplace,” said Jimmy Chan, CEO of Sugarmade. “Additionally, we are in the process of vetting other possible acquisitions to further enhance the portfolio of hydroponic and cultivation supply products. We are certainly excited about our prospects for the remaining part of this year and into next year.”

Sugarmade Strengthening Position as Industry Leader

Sugarmade has been actively seeking acquisitions and executing new supply contracts to strengthen its place as a leader in the hemp-industry supply space. The company’s most recent action involves exercising its option to invest in Hempistry Inc, a company founded by Sugarmade’s own Chan. Utilizing advanced plant genetics and technological innovation, Hempistry is now scaling operations to approximately 2,600 acres aggregated between its subsidiaries, while adding to the product value chain and enhancing production efficiencies.

“These investments into Hempistry make sense for Sugarmade, not only from a financial standpoint relative to probable rate of return, but also from a business development standpoint,” said Chan. “As Hempistry and other local cultivators grow, we believe Sugarmade’s status as a potential supplier to cultivators will also continue to rise.”

Sugarmade’s other brands in the hemp sector include Zenhydro.com, a comprehensive online hydroponics supply outlet; AthenaUnited.com, a specialist company providing hydroponic supplies to large commercial cultivators; CarryOutSupplies.com, a leader in paper and plastic supplies; and BudLife Cannabis Storage Solutions, which offers the world’s only patented intelligent packaging, storage and distribution for medicinal plants.

The company also recently announced that it is set to acquire the flagship operation of Hydro4Less, which is expected to produce about $5 million in revenues and be profitable this year. In the agreement, Sugarmade gained an option to purchase two additional Hydro4Less retail operations, currently producing in excess of $20 million annually.

In addition, expanding on an already-existing marketing agreement with Bizright LLC, SGMD announced that it will acquire Bzrth Inc. These accretive acquisitions will make Sugarmade one of the largest publicly traded hydroponic supply companies in the world.

Companies Moving into Welcome Environment

As legislation in the United States moves toward creating a more welcome environment, Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) has established a new growth opportunity in the United States with its acquisition of a hemp-based products platform, Redwood Holding Group LLC. CRON has entered into a definitive agreement to acquire four of Redwood’s operating subsidiaries. Redwood manufactures, markets and distributes hemp-derived, CBD-infused skincare and other consumer products online and through retail and hospitality partner channels in the United States under the brand, Lord Jones(TM). Redwood’s products use pure hemp oil that contains natural phytocannabinoids and terpenes found in the plant. The transaction is expected to close in 3Q 2019, subject to customary closing conditions and regulatory approvals.

Greenlane Holdings Inc. (NASDAQ: GNLN), one of the largest global sellers of premium cannabis accessories, CBD and liquid nicotine products, recently announced an exclusive U.S. distribution partnership with Cookies for the national launch of the Cookies hemp-derived CBD product line, including Cookies CBD cartridges for the G Pen Gio. Cookies CBD products will feature terpene profiles inspired by famous Cookies strains, such as Cereal Milk, London Pound Cake 75, and Gelatti. “We are positioning ourselves as a CBD category captain, building a portfolio of the most-respected brands in the sector through exclusive distribution agreements,” said Greenlane chairman and CEO Aaron LoCascio. “Over the past several months, we have signed exclusive distribution agreements to build a portfolio of the best existing and new CBD offerings, including exclusive deals with Bloom Farms, Cookies, Select, Mary’s Nutritionals, and Slang. The pace of these particular partnerships illustrate that Greenlane continues to be the partner of choice for cannabis brands that seek to build global brands with hemp-derived CBD products.”

The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) (TGOD Profile) recently signed a multiyear agreement with Neptune Wellness Inc. for extraction, formulation and packaging services, including exclusive rights on processing and manufacturing of certified organic products for the Canadian market. The largest deal for a processor to date, the agreement cements TGOD’s leadership position in organic consumer wellness products and represents a significant investment in high-value manufacturing and supply chain jobs. Neptune’s expertise will enable TGOD to quickly scale up production of a wide range of consumer wellness products. Under the terms of the agreement, TGOD will allocate more than 230,000 kilograms of cannabis and hemp biomass for Neptune to process and transform into premium certified-organic consumer wellness products. The contract between TGOD and Neptune covers a period of three years and is expected to be back-end loaded with the first year accounting for approximately 20% of the total value.

KushCo Holdings Inc. (OTCQX: KSHB) is expanding its platform by launching a new retail services division. Led by an experienced team, the division is designed to facilitate partnerships with large-scale, go-to-market operations focused on CBD mass distribution. The new business unit will also focus on industry education and compliance as well as building distribution networks of CBD brands across conventional retail channels. “The maturation of the cannabis industry has opened up countless avenues for business development across the industry’s supply chain,” said KushCo Holdings president and CRO Jason Vegotsky. “The cannabis industry continues to scale at an ever-increasing rate, and we are excited to be adding two seasoned CPG sales veterans with analytical and customer-centric backgrounds to our team.”

As the attitude surrounding hemp cultivation, distribution and use continues to warm up, opportunities within the industry are certain to increase. Companies that are committed to providing quality services within the space look to benefit exponentially as the market appears certain to expand.

For more information on Sugarmade, visit Sugarmade Inc. (OTCQB: SGMD)

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CannabisNewsAudio – Sugarmade, Inc. (SGMD) Poised to Profit as Hemp Demand Surges

Related Editorial
While the huge increase in U.S. consumer demand from hemp extracts and hemp product is largely credited as the reason for the boom in the number of hemp acres under cultivation, there is a significant additional part of the hemp-growth story to tell.

With a pending acquisition in the cultivation supply market, Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile) appears to be well poised to become a strong pick-and-shovel provider to the hemp industry. Even the large cultivators and suppliers are now getting in the hemp market. One of the first companies of the larger players to make the move into hemp cultivation was Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), which just a few days ago announced that it would invest $300 million to enter the hemp market. Not to be outdone in the hemp gold rush, Greenlane Holdings Inc. (NASDAQ: GNLN), which began trading on the NASDAQ, and The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) (TGOD Profile) have both entered the fray. KushCo Holdings Inc. (OTCQX: KSHB), another industry supplier, is also seeming to benefit for the strong growth in the hemp marketplace.

To hear the CannabisNewsAudio version, visit http://cnw.fm/nAbW2

To view the full editorial, visit http://cnw.fm/qB903

About Sugarmade Inc.

NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://cnw.fm/SUGAR

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Hemp Industry Benefiting from U.S.-Chinese Trade War

CannabisNewsWire Editorial Coverage: While the huge increase in U.S. consumer demand from hemp extracts and hemp product is largely credited as the reason for the boom in the number of hemp acres under cultivation, there is a significant additional part of the hemp-growth story to tell.

USDA reports indicate that hemp is by far the crop with the fastest growth in acres, planted at nearly a 400% increase.
Many in farming communities now see hemp cultivation as an economic necessity.
Consumer demand for hemp extracts continues to grow with little letup in sight.

To view an infographic of this editorial, click here.

Mainstream Acceptance

An increasing number of U.S. farmers affected by low prices and reductions in Chinese agricultural purchases are now seeking economic refuge by planting hemp. And in many cases, hemp is saving farmers from bankruptcy.

In many farming areas — in particular Western Kentucky and Tennessee — the movement to hemp will restore many farmers to economic viability. Not only is there a strong demand for hemp biomass, but prices are significantly higher compared to other crops with many Kentucky farmers last year realizing tens of thousands of dollars in profits per acre compared to well less than $1,000 per for other crops.

The numbers are in from the U.S. Department of Agricultural on the number of acres of hemp planted this year. At 128,320 acres, those numbers are up from only 27,424 acres last year, with even more growth expected next year. With such growth, it is no wonder that both supply and cultivation companies are realigning their businesses to take advantage of the huge market growth.

In part, this growth stems from the hemp industry making rapid headway into mainstream acceptance. Recent reports indicate that two-thirds of all Americans now favor legalizing recreational cannabis use, up from 25% support two decades ago. And what may be most telling is that support for the crop is increasing among seniors (aged 55 and older) as well as the Republicans — both traditionally known for their conservative views regarding hemp.

In addition, medical marijuana is now legal in 33 states, with 10 of those states actually legalizing recreational use as well. And Canada overturned an almost century-old tradition when it legalized use of the drug countrywide last year. The trend is clear, and the continued increase in positive public acceptance seems inevitable.

Savvy companies in the sector, including brand-development company Sugarmade Inc. (OTCQB: SGMD), are seeing the window of opportunity and are positioning themselves to make the most of their areas of expertise. For Sugarmade, that area is hydroponic systems, which give cannabis cultivators greater control over how their plants are grown.

Sprouting hemp indoors provides an array of benefits, including protection from changing weather, such as sudden frosts or unseasonal heat, which can harm crops. Indoor cultivation also protects crops from contaminants, infections and chemicals.

Hydroponics offers even greater advantages. When farmers feed their plants with carefully balanced nutrient baths instead of soil and fertilizer, they harvest a cannabis crop with higher CBD content, making their plants more valuable.

In addition, when hydroponics are used, hemp often more easily passes the stringent quality tests that are applied to plants in this sector, tests that are likely to become even firmer now that the federal government is officially allowing and regulating hemp production in the United States. This is yet another reason hydroponic experts such as Sugarmade may see significant benefits as the hemp industry grows.

Forecast Growth

And the hemp wave doesn’t appear to be ebbing anytime soon. Industry forecasts differ, depending on which source is cited. Grand View Research says the global legal market is expected to reach $66.3 billion by the end of 2025, with an anticipated CAGR of 23.9% during the forecast period, while Business Wire projects the market will reach $89.1 billion by 2024, with a CAGR of 37% during the forecast period.

While the numbers may differ a bit, everyone appears to agree that growth seems certain. And that growth may indicate that companies involved in the sector are almost certain to grow as well. At least a portion of the growth for some of those companies, including Sugarmade, will come from careful and strategic acquisition within the industry.

Last year Sugarmade announced the creation of the industry’s largest publicly traded cannabis and hydroponics supply company.

The announcement was made after the signing of a master market agreement with industry leader BZRTH LLL, a highly successful manufacturer and distributor to the hydroponics and cannabis markets. The acquisition is expected to be highly accretive for common shareholders.

Sugarmade is also in the process of acquiring Sky Unlimited, LLC, which through its AthenaUnited.com operations and website offers several popular hydroponic brands to a variety of growing agricultural cultivation sectors. This planned acquisition has prompted Sugarmade to raise its revenue guidance for calendar 2019 from $30 million to $70 million.

Moving to the Majors

With such impressive growth, it’s little wonder that hemp companies are eager to uplist to either the NASDAQ or NYSE exchanges. Such a move can mean reduced volatility, added trading volume and improved liquidity, along with the simple credibility that comes from being listed with alongside major players from a wide range of industries.

For many companies, that credibility translates into increased awareness and investment opportunities. Since not all financial institutions are allowed to invest in or cover companies that trade on the OTC exchange, uplisting may increase investment opportunities for companies moving their way forward in the burgeoning hemp space.

The fact that the major exchanges are approving cannabis companies’ uplisting applications is another strong indication that the industry has arrived. Since February 2018, 8 of the 11 pot stocks that now list their common stock on either the NYSE or NASDAQ have uplisted from the OTC exchange. The acceptance of these initial companies may clear the path for subsequent hemp movers and shakers, such as Sugarmade, which are hoping to follow suit.

Not all hemp companies are eligible to make the uplisting move, however. Because U.S. federal regulations still categorize marijuana as a schedule I drug, companies that directly deal in the U.S. cannabis industry are ineligible to list their shares on either of the major exchanges. In addition, both the NASDAQ and NYSE have a fairly stringent list of requirements —based on trading, average daily volume and minimum share price— that must be meet before a company’s application for uplisting is accepted.

The stringent application and approval process mean that companies currently trading on or exploring the uplisting option should be some of the most viable in the industry. Sugarmade is committed to meeting that standard. In only a few years, the company has moved from being a small, innovative supplier to the quick-service restaurant industry to its current status as a multi-divisional, multi-product company in various market sectors, with a special focus and presence in the world of cannabis.

Value of Trading Up

Sugarmade isn’t the only company that recognizes the significant value of trading on the major exchanges.

One of the first cannabis companies to uplist, Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) has traded on the NASDAQ exchange since February 2018. The company recently announced its Q2 numbers, reporting that net revenue was $10.2 million in Q2 2019, a 202% increase from $3.4 million in Q2 2018. The increase was primarily driven by the launch of the adult-use market in Canada. Net revenue increased 58% quarter-over-quarter from $6.5 million in the first quarter of 2019, primarily driven by increased sales in CBD oil. “During the second quarter, Cronos Group expanded its R&D capabilities, innovation expertise and global infrastructure network in what has been a year of tremendous growth,” said Cronos CEO Mike Gorenstein. “We opened Cronos Device Labs, our new global R&D center in Israel, announced the acquisition of our new state-of-the-art fermentation facility and added Dr. Todd Abraham as Chief Innovation Officer to our executive leadership team.”

A leading distributor of premium vaporization products and consumption accessories, Greenlane Holdings Inc. (NASDAQ: GNLN) common shares began trading on the NASDAQ exchange in April. Greenlane customers include more than 6,600 independent smoke shops and regional retail chain stores, which collectively operate approximately 9,700 retail locations and hundreds of licensed cannabis cultivators, processors and dispensaries throughout the United States and Canada. Greenlane also owns and operates two of the most-visited North American, direct-to-consumer, e-commerce websites in the vaporization products and consumption accessories industry, VaporNation.com and VapeWorld.com, which offer convenient, flexible shopping solutions directly to consumers.

KushCo Holdings Inc. (OTCQX: KSHB) is another supplier to the growing hemp industry. A premier producer of ancillary products and services to the cannabis and hemp industries, KushCo awaits approval of its application to uplist on the NASDAQ exchange and is eager to satisfy all applicable listing and regulatory requirements. “Listing on the NASDAQ Global Select Market, the highest and most prestigious NASDAQ tier, will raise the company’s profile by diversifying our shareholder base and enhancing share liquidity in support of our company’s long-term goals and objectives,” said KushCo chairman and CEO Nick Kovacevich.

The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) is also awaiting a determination by the NASDAQ that it has satisfied all applicable listing requirements. Subject to approval for listing, the company’s common shares will continue to trade on the TSX Exchange (TSX) under ‘TGOD,’ which is also the reserved symbol for the NASDAQ application. “This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand,” said TGOD CEO Brian Athaide. “Our team remains focused on executing our business plan and creating value for our shareholders.”

As more hemp companies make the uplisting move, they may see added benefits from being traded on the major exchanges.

For more information on Sugarmade, visit Sugarmade Inc. (OTCQB: SGMD)

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Political Backing, Investor Interest Fuel Kentucky Hemp Boom

CannabisNewsWire Editorial Coverage: The surging hemp industry means exciting benefits for Kentucky.

Hemp is big business in Kentucky. Among the companies working in the state is Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile), a supplier of hydroponic equipment that is now moving into hemp through an investment in Hempistry. In New York, a leading politician has been in contact with Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) to ensure the survival of a hemp project threatened by executive upheaval. Tilray Inc. (NASDAQ: TLRY) is looking even further than North America for growth. Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is focusing on innovation in the sector. New Age Beverages Corporation (NASDAQ: NBEV) has been expanding its distribution and marketing power to reach into an ever-growing hemp market.

Kentucky is now the largest producer of hemp by state in the United States, fueled by local and national political support.
The hemp boom promises an alternative crop to struggling farmers.
The burgeoning industry is drawing investment into the state from hemp companies.

To view an infographic of this editorial, click here.

Hemp Achieves Great Growth in Kentucky

This year has seen a serious ratcheting up of hemp production across the United States. After the 2018 Farm Bill passed late last year legalizing national widespread hemp production, companies have been rushing to establish a foothold in the industry. Some are expanding test cultivation sites established under the 2014 bill, while others are setting up new operations.

This boon is proving particularly profitable for Kentucky. Having wholeheartedly embraced hemp cultivation under the previous regulations, the state is benefiting from a relatively well-developed industry that has existing strong political support. These favorable circumstances are attracting hemp companies and hemp investment into the state, helping to balance declines seen elsewhere in the state’s agriculture space.

Heading for Kentucky

A wide range of businesses, including brand-development company Sugarmade Inc. (OTCQB: SGMD), are investing in Kentucky’s hemp sector, funding the cultivation, processing and sale of the plant. Whether it’s being used for grain, fiber or CBD production, hemp crops are booming.

Hemp production in Kentucky began in 2014, when 20 approved growers planted 33 acres of the crop under legislation that supported trials of hemp farming. By 2018, the industry had grown 200 times in size to 6,700 acres cultivated by 210 growers. On top of this, 14 university projects and 72 processors were invested in the crop. Only Colorado exceeded Kentucky for hemp production within the United States.

Since the passage of the 2018 Farm Bill, the state has seen a further staggering surge in production. Kentucky now has 60,000 acres devoted to hemp production, making it the biggest hemp-producing state in the country. The industry has produced nearly a thousand jobs, 250 of them in the first half of this year. And as companies such as Sugarmade increase their investments in the state, that growth looks set to continue.

Sugarmade entered the hemp sector through hydroponics. A significant portion of hemp is grown indoors to provide greater control over how the crop is grown. Growth and acquisitions have made Sugarmade one of the hemp sector’s leading providers of hydroponic equipment and supplies, which are vital for this indoor growth.

Now the company is taking a more direct interest in hemp by exercising its option to invest in Hempistry Inc. Founded by Sugarmade’s own CEO Jimmy Chan, Hempistry is growing hemp in Madison County, Kentucky. Sugarmade is making a series of investments in the project that are expected to total an estimated $1 million.

Kentucky Politicians Back Hemp Farmers

One of the reasons for Kentucky’s hemp boom is the strong support provided by politicians across the state. Representative James Comer and Senator Mitch McConnell have actively backed the industry at a national level, while Kentucky Agriculture Commissioner Ryan Quarles has been an advocate within the state. Under Quarles’s leadership, the Kentucky Agricultural Department has encouraged the development of the hemp industry, putting policies in place to support it.

This political support is at the heart of what makes Kentucky so appealing to companies such as Sugarmade as they seek opportunities for hemp investment. Though hemp is once again legal on a federal level, the road to this point has been rocky, and the industry is likely to face further political hurdles. Knowing that Kentucky will provide political support makes the state an appealing place to invest.

McConnell has been particularly essential in establishing this support. The senior Kentucky senator used his position as majority leader to push hemp reform through the federal legislative process. This summer, he publicly reinforced his support for hemp through a tour of the industry in Kentucky with Sonny Perdue, head of the U.S. Department of Agriculture (USDA). The tour marked an important moment for Kentucky as a leader in that industry, as well as the hemp industry as a whole, acknowledging its newfound legitimacy.

Among the issues the two men talked about on the tour was improving access to finance for hemp growers. Though December’s farm bill legislation theoretically should have removed financial barriers, in practice, banks need encouragement to change their approach. With high-profile advocates such as McConnell and Perdue taking a firm stance, this is likely to change rapidly, making life easier for companies such as Hempistry and Sugarmade.

Hemp Provides Something We Need

In strained political times, hemp has provided something we all need — an issue on which politicians from both major parties can agree. The hemp provisions of the farm bill passed thanks to cross-party support, and politicians from both sides of the aisle have been keen to encourage the industry.

Nothing makes this clearer than the involvement of both Democrat and Republican senate leaders in supporting and encouraging the industry. Earlier this month, Senate Minority Leader Chuck Schumer spoke directly to the leadership of Canopy Growth Corp. to ensure that recent changes at the company wouldn’t stand in the way of a building a cutting-edge hemp facility in New York. When companies such as Sugarmade see this type of support, they feel confident investing heavily in hemp, knowing that both parties support industry expansion.

The reason behind this widespread support is that hemp caters to another need — new avenues for farmers to make a living. Farm production in the United States is at a six-year low, with many farmers struggling to get by. Economic disruption and trade wars threaten to further undermine their financial well-being. As a high-value cash crop, hemp offers a lifeline to farmers, making support of the industry more important than ever.

The money poured into the industry by Sugarmade and other savvy companies may be the difference between success and failure for rural communities. And it doesn’t hurt that, along the way, these investments appear likely to be highly profitable for these companies and their investors.

Hemp Producers Rise to Prominence

The growth of the industry has brought hemp-growing companies to greater prominence than ever.

Schumer’s call to Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) highlights just how much influence these companies now have, as they nurture the first shoots of what promises to become a fruitful industry. Canopy Growth Corporation is one of the largest Canadian companies operating in the hemp space, a leader in the field with significant resources and influence. The surprise removal of CEO Bruce Linton caused alarm in some quarters as well as uncertainty about the company’s future direction. But Schumer’s direct intervention has brought reassurance that the company will move ahead with its New York hemp plans.

While Canopy Growth has shed its most prominent executive, competitor Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) has added a new one to its team. Dr. Todd Abraham is joining the company as chief innovation officer. A thought leader in the field of consumer packaged goods, Abraham has shown faith in the staying power of the hemp industry through his move to Cronos. He’ll have plenty of tools to innovate with, as the company recently announced that it is establishing a brand new R&D facility, as well as acquiring a state-of-the-art fermentation and manufacturing facility. These deliberate moves put Cronos Group in a strong position to create new products using cultured cannabinoids.

The industry expansion isn’t limited to just the United States and Canada. Tilray Inc. (NASDAQ: TLRY) has recently arranged the export of CBD-rich oils to Ireland and is expanding its European leadership team. Hemp and CBD markets operate under different rules in Europe, so local knowledge is essential for expansion there, and Tilray is investing in that knowledge.

New Age Beverages Corporation (NASDAQ: NBEV) has also been pushing to become a global brand, following an announcement to this effect in April. But the company isn’t neglecting its American markets. It recently acquired marketing, sales and distribution company Brands within Reach to strengthen its marketing and distribution position in North America, working to take its relaxing drinks to an ever-wider market.

With the support of politicians and business leaders, hemp is clearly growing in popularity. Nowhere is the economic impact of that felt more strongly than in Kentucky.

For more information on Sugarmade, visit Sugarmade Inc. (OTCQB: SGMD)

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With 10,000 Licenses Issued, California Reflects the Growing Power of Hemp

CannabisNewsWire Editorial Coverage: As hemp production increases, Californian legislators have extended the duration of thousands of cannabis cultivation licenses to support the state’s thriving industry.

Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile) is supporting many of these companies that have cultivation licenses by providing cultivation and extraction equipment. Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), one of the biggest companies in the sector, is increasing its growing capacity while helping educate about medicines. Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is leaning into new technology, with new facilities for R&D and processing. The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) (TGODF Profile) has tapped into the demand for organic produce and is now expanding into global CBD market. GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF) is developing powerful new medicines, in which hemp could help tackle previously uncurable illnesses.

California is one of the largest regions for cannabis and hemp cultivation.
Recent legislative moves show that the state’s politicians are hemp friendly.
Demand for hemp and cannabidiol (CBD) continues to soar.
Companies are responding with increased production, acquisitions and new technology.

To view an infographic of this editorial, click here.

The Land of Mass Licensing

The past year has seen substantial growth in the Californian hemp industry, and with that growth came challenges for the state’s governing bodies. The state is home to one of the largest legalized recreational cannabis markets in the world, and Californian authorities have reportedly issued over 10,000 licenses to producers, processors and retailers involved in the cannabis industry. This includes those working with hemp, a non-psychotropic form of cannabis, and CBD, a chemical derived from hemp.

The swift growth of the state’s industry almost triggered a crisis this spring, as thousands of temporary licenses were set to expire before authorities had time to process permanent licenses. The state senate stepped in to extend the duration of temporary licenses and protect law-abiding business owners from a bureaucracy struggling to keep up with demand.

The legal move to extend the licenses may indicate the state’s political attitude toward the industry and holds promise for companies working in California.

A Friendly Place to Work

For companies working with hemp and related products, California is possibly the most business-friendly place in the world to be based. The state is headquarters for a wide range of companies working in the sector, from producers and retailers to companies providing support services, such as Sugarmade Inc. (OTCQB: SGMD).

Based in Monrovia, California, Sugarmade develops brands and products with disruptive potential. Over the past few years, this strategy has led the company to develop a growing focus on hemp and the surrounding sector, a space filled with innovation, fast-developing new practices and promising potential.

Rather than being cultivator or retailer, however, Sugarmade is a supplier of vital materials to the hemp industry. The company sells hydroponic equipment and supplies needed for growing consistent, high-quality crops in secure, climate-controlled indoor facilities. SGMD is moving deeper into the market by extending its catalog to include extraction equipment, essential in the process of acquiring valuable CBD from hemp plants.

California is home to so many of these companies for a number of reasons. The state is one of the largest markets in the world by population for hemp and related products, with only Canada matching it in scale. In addition, California is one of the first areas to become friendly to the industry, passing groundbreaking legislation in the 1990s allowing the space to progress.

This attitude has been both supported and encouraged by a political establishment that appears to look favorably on the industry. The Californian senate, having seen thousands of new businesses such as Sugarmade spring up, is eager to nurture these entities for the jobs and wealth they bring to the state’s economy. This general support is reflected in the government’s decision to extend temporary licenses to prevent new businesses from faltering just as they had been established.

Staggering growth has caused challenges for the Californian authorities in providing licenses. The federal legalization of hemp in December added to interest in the industry and pressure on the licensing system. The state’s responsiveness to problems within the system has shown how serious it is about hemp and creating a friendly environment for the likes of Sugarmade and its customer base.

The Hemp Revolution

The situation in California appears to reflect a much wider pattern in the hemp industry, across the United States and beyond.

Ten years ago, hemp was barely even mentioned in conversations about business. As a source of useful materials, its use had fallen out of fashion with the end of the age of sail, during which it had provided fibers for ropes and canvas. But then a shift came, as companies in the cannabis space looked for other options they could market. As a nonpsychoactive ingredient, CBD could be sold in markets where cannabis itself couldn’t. And hemp offered a rich source of CBD without many of the complications surrounding the rest of cannabis.

Since then, demand for CBD has rocketed. The component is used in a wide range of products including cosmetics, health foods, and vaping liquids. Companies have emerged specifically to cater to the hemp market, and those companies have turned to the likes of Sugarmade for the equipment they need.

The popularity of CBD among consumers has also rocketed, leading to shortfalls in supply. The 2018 Farm Bill, which legalized the hemp trade at the federal level in the United States, will help with meeting this demand in the long term. But the bill is no magic bullet, and companies need time to gear up in the new commercial environment that has been created.

This gearing up has led to increased demand for cultivation equipment, creating shortages in that area. Cultivators have bought everything that Sugarmade can provide, as hydroponics companies see a boom in sales alongside the hemp companies they serve.

Dealing with Demand

Sugarmade has made a variety of moves — in California and beyond — to meet this growing demand.

Expansion is obviously critical to making the most of this opportunity, and the company has entered a period of serious growth in its sales, product lines and bottom line. As a critical link in the hemp supply chain, Sugarmade is not just in a position to grow, the company must grow in order to meet customer needs.

One of the key tactics in this expansion has been SGMD’s use of acquisitions and agreements. The company acquired Sky Unlimited LLC and, through it, the AthenaUnited.com online sales operation, increasing its sales capacity. Sugarmade has also struck deals with companies such as Hempistry, BizRight Hydroponics and Plantation Corp, ensuring smooth supply chains and greater capacity to meet surging demand.

Adding new technology to its catalog has allowed Sugarmade to make better use of this moment. The company is moving to supply next-generation extraction machinery and develop artificial intelligence systems to monitor hemp crops. By providing its customers with the latest technology, Sugarmade may be better able to distinguish itself from its competitors and ensure the profitability of its customers, for its own long-term good.

Space for Growth

With customer demand firmly outstripping supply, the hemp sector is creating a space in which a wide range of businesses can flourish.

One of the most important is Canadian company Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), which was the largest cannabis company in the world by market capitalization as of April this year. Like Sugarmade, Canopy Growth Corporation has taken big steps to continue expanding and claim a larger share of the hemp and related markets. The company has increased its production capacity through a mixture of acquisitions and ongoing work to increase its existing licensed production facilities. Acquisitions have also featured in its work further down the supply chain, such as acquiring hemp skin care company This Works.

Like Sugarmade, Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is looking to new technology to support its expansion. The company recently announced the creation of an R&D facility, which has the potential to provide new products for a curious and often experimental customer base. To support such innovations, the company is also acquiring a state-of-the-art fermentation and manufacturing facility, which will allow Cronos to produce cultured cannabinoids.

The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) has focused on a specific sector of the customer base, setting itself up as a source of organic and sustainably grown products. The creation of two new production facilities will allow the company to tap into rising demand, increasing its growing capacity from 156,000kg to 202,500kg. And with the growing popularity of hemp-CBD products, the company is setting up a global strategic hemp division to give it greater global reach in an important part of the sector.

GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF) is applying the power of cannabidiol to tackle otherwise untreatable diseases. The company’s 20 years of experience in the sector is currently being applied to seizures associated with tubular sclerosis complex, for which one of its drugs recently underwent successful clinical trials. GW has become a world leader in cannabinoid medicines, whose value is increasingly widely recognized.

With hemp and related sectors growing so fast, California’s senators appear to have made a wise decision to smooth the way for local cultivators. Both customers and businesses in the state and beyond may see the benefits.

For more information on Sugarmade, visit Sugarmade Inc. (OTCQB: SGMD)

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