Recreational cannabis has been legalized within the state of California as from January 1, 2018. The legalization has triggered increased demand for cannabis. It has also impacted positively on the businesses of Sugarmade Inc (OTCMKTS:SGMD) and BizRight Hydroponics, Inc. The duo is said to be working on a master market agreement and once completed, it will become one of the world’s largest publicly traded supplier.
The booming legal cannabis sector and the upcoming agreement are expected to put grow Sugarmade to another level; thanks to the fact that BizRight, has been one of the fastest growing companies in the cannabis industry. The company’s CEO Mr. Jimmy Chan is optimistic about Sugarmade exceeding its expectations given the upcoming growth from a majority of Sugarmade
He says, “We are especially excited about the increase in business being seen…and 2018 will certainly be very busy for our Company.”
The number of state-issued licenses is expected to grow dramatically
It is worth noting that with the new legalization, many states are now issuing cultivation licenses. As of January 13, 2018, 442 temporary cannabis cultivation licenses had been issued out by the California Department of Food & Agriculture. The number is expected to grow in the coming months given that there are thousands of additional licenses at the city and country level still waiting approval.
That said, the market can expect an upsurge of cultivation markets the likes of New Mexico, Pennsylvania, Florida, Alaska and Texas among others. Chan further confirms that they are in the process of reviewing their internal revenue estimates for 2018.
Sugarmade is looking forward to growing with the industry over the coming years
Sugarmade has made a consent to modify its operations in preparation for the forthcoming huge increase in business. The company is taking huge strides and will begin by expanding its staffing particularly in the accounting and financial areas. It also expects to expand its office space and will be relocating its headquarters to a more appropriate location, which can house all its staff members.
As if this is not enough, the company is planning to consolidate its warehouse in an effort to improve the logistical process.