Sugarmade Inc (SGMD)

[Not2Wise]

Bud car deal from 8K

"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."