It was a significant day for Sugarmade Inc (OTCMKTS:SGMD) as the emerging cannabis company made a major announcement with regards to the signing of a key letter of intent.
Trading Data
On Monday, SGMD stock ended flat at $0.0009 with more than 123.46 million shares, compared to its average volume of 45.11 million shares. The stock has moved within a range of $0.0007 – 0.0010 after opening trade at $0.0009.
Sugarmade Signs Binding LOI to Enter Rare Cannabinoid Market via License Agreement for Patented THC-V Rich Chemovars
The company, which hopes to make a mark in the licences cannabis space, announced yesterday that is inked a binding letter of intent with the company GenCann Inc. It is a significant development considering the fact that GenCann is best known for licensing cannabis chemovars which are especially rich in THC-V. However, the announcement did not meet with much excitement from investors and the Sugarmade stock traded in a range.
In this situation, it ought to be noted that stocks which trade in a range can often break out as well and it now remains to be seen if there is any reaction to the news over the rest of the week.
Now that the letter of intent in in place, Sugarmade and its licensed cannabis cultivators are going to be get a 5 year run during the course of which they are going to cultivate cannabis which will contain among the highest amount of THC-V. It may be a good idea to keep track of the news with regards to Sugarmade.
Key Quote
“While THC-V is sometimes referred to as a ‘rare cannabinoid,’ we believe the term no longer applies relative to our planned cultivation effort using GenCann’s Chemovars,” commented Jimmy Chan, CEO of Sugarmade. “The test results from certified California laboratories of these chemovars are certainly impressive, with THC-V yields in flower of up to 8%. We think the GenCann Chemovars are a game-changer in the cannabinoid space. Sugarmade plans to make a substantial commitment to bring products based on THC-V to the California market and perhaps to other states in the future. Stay tuned for our upcoming product plan announcements.”
Technical Data
SGMD stock is trading below the 20-Day and 50-Day Moving averages of $0.0010 and $0.0011 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0019.
