Yes I remember those partnerships. I don't remember what revenues they got out of them, but I do remember them terminating their agreement with sriracha with reasoning being low profitability and wanting to focus all business on the cannabis industry (Bizrite), which they did. The other companies like hydro4less and sky unlimited were acquisition targets, they intended to acquire after Bizrite.
I believe all we have to go by regarding Budcars is this 8-k filed on Feb 10:
" On February 7, 2020, the Company signed a definitive agreement (the “Agreement”) with with Indigo Dye Group Corp. (“Indigo”) with a mailing address of 5600 Warehouse Way, Sacramento, CA 95826, the operator of BudCars Cannabis Delivery Service (“Budcars”), which provides services in the Sacramento metropolitan area. Under the terms of the Agreement, the Company will purchase a 40% stake in the Budcars operation for a cash amount of $700,000, and will receive an option to acquire an additional 30%, which upon exercise will provide a controlling stake in the operation for the Company.
Budcars operates its delivery service in strict adherence to all state, local and municipal regulations and is fully licensed for operations by State of California regulators.
The $700,000 investment will be exclusively utilized for business expansion and operational purposes with zero funds used as consideration for the share purchase to the owners of BudCars or Indigo. Sugarmade plans to apply its operational expertise to enhance the business operations of Budcars, including geographic delivery expansion. In addition, the parties plan to enhance business operations via advancement of strategic vertical integration in order to improve product selection, product quality and profit margins.
The transaction is considered closed with the Agreement being binding on the Parties. This stock acquisition represents Sugarmade’s first action relative to its recently announced change of business direction toward higher growth areas of the regulated cannabis sector. "
I don't know if this means they are getting 40% of the profits as of that date, but we will have to wait and see on the 10-k.
As for the dilution, who knows when it will stop? I imagine they will be able to not only stop issuing further notes and refrain from a R/S, but also return shares in a year from now. I hope after the LA expansion they don't announce another expansion or acquisition until adding shareholder value through the share structure, because if they continue to dilute you would be correct and the price will not hold any gains.
