Sugarmade Inc. (OTCMKTS:SGMD) has announced its first transaction on May 04, 2022, relative to its collaborative cannabis cultivation strategy, by entering into a contract with Cannabis Global, Inc. As per the terms of the agreement, Sugarmade is to produce around 25,000 pounds of “Fresh Frozen” cannabis, which Cannabis Global, Inc. will use in its product lines and distribute to the California markets. The production will be assisted by partner licensed and permitted Lake County, California, cannabis cultivators.
On Wednesday, SGMD stock gained 12.50% to $0.0004 with 62.38 million shares, compared to its average volume of 47.96 million shares. The stock moved within a range of $0.0003 – 0.0005 after opening trade at $0.0003.
Instead of the conventional method of drying and curing after harvest, Fresh Frozen cannabis is cultivated to be flash frozen upon harvest right away. The companies have decided upon a pre-booked, fixed-price contract in the amount of $700,000. It includes cash payments from Cannabis Global to Sugarmade of $300,000 and accounts for the balance of $400,000.
Cannabis strains for Cannabis Global’s cultivation will be specifically selected for attributes conducive to producing ultra-premium solventless extracts and products based on live rosin and hash concentrates. All cannabis plants upon harvest will be trimmed and the best flowers flash-frozen to preserve the delicate oil-containing trichomes. Following that, the Fresh Frozen cannabis is to be stored at ultra-low temperatures until processed via 100% solventless extraction technologies.
Jimmy Chan, CEO of Sugarmade, commented, “As we recently announced to our shareholders, we see a strong business model of utilizing now idle resources of other California cultivators who have decided they can no longer afford to cultivate cannabis and market their biomass into the marketplace. This new model will allow local Lake County, California, cannabis companies to remain in business to do what they do best – cultivate cannabis – while allowing Sugarmade to concentrate on distribution and marketing of cannabis flower and manufactured products.”
SGMD stock is trading below the 20-Day and 50-Day Moving averages of $0.0005 and $0.0005 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0012.