Sugarmade Inc (OTCMKTS:SGMD) Stock Continues to See Selling Pressure: Here is Why

Sugarmade Inc (OTCMKTS:SGMD) stock has been moving within a narrow over the past few trading amid lack of trigger.

Market Action

In the previous trading session, SGMD stock closed unchanged at $0.0019. A total of 32.21 million shares traded for the session hands, below its average volume of 63.53 shares. The stock opened at $0.0018 and moved in a range of $0.0018 – 0.0019.

Key Trigger

Aug. 31, 2021 – Sugarmade Signs Definitive Agreement to Acquire California Cannabis Licenses to Provide for the Opening of Three New Vertically Integrated Nug Avenue Locations

Sugarmade announced the signing of a Definitive Agreement to obtain three non-storefront California Cannabis licenses from the Los Angeles Department of Cannabis Regulation (the “DCR”), along with corresponding licenses from the California Bureau of Cannabis Control (the “BCC”), which collectively provide for the licensing of three new vertically integrated Nug Avenue cannabis delivery hubs.

Each of the three licenses can be used for up to three of the five categories of licensed cannabis-related business activities allowed under the terms of these licenses: retail delivery, manufacturing, distribution, transport-only, and cultivation.

By using each license for a combination of 1) retail delivery of cannabis products, 2) supply chain distribution of cannabis products, and 3) manufacturing/packaging of cannabis products, the Company now possesses the licensing credentials to open three new Nug Avenue locations in the Los Angeles metropolitan area.

Key Quote:

“Once we have put all of these new licenses to use, we will have quadrupled our distribution footprint in the world’s largest cannabis market,” noted Sugarmade CEO Jimmy Chan. “We also continue to move toward establishing our own cultivation operations. Together, these steps are part of our core vision – to establish a full farm-to-door vertically integrated cannabis company capable of driving a much greater percentage of total sales to the bottom line for our shareholders, while capturing much greater control over product quality for our customers.”

Trader Notes:

SGMD stock is trading below all the key moving averages with 50-day and 200-Day SMA stand at $0.0020 and $0.0028 respectively. The stock has lost 27% over the past 3-month, but up 46% so far this year. The company has high shares float of 5,219.11 M (95.86%).