Sugarmade (SGMD) Stock Surges 22%: Will it Continue?

If you are looking into cannabis stocks this morning then it might be tough to look past the Sugarmade Inc (OTCMKTS:SGMD) stock, which has soared by 22% at the time of writing.

Sugarmade (SGMD) Makes A Big Move After Optimistic News

This morning the company announced that it signed a Memorandum of Understanding by way of which it picked up three California Cannabis licenses. The licenses were acquired from the Los Angeles Department of Cannabis Regulation and corresponding licenses were acquired from the California Bureau of Cannabis Control.

After acquiring these licenses, Sugarmade is going to look towards establishing three new cannabis delivery hubs for Nug Avenue in the Los Angeles metropolitan area. Under the terms of the licenses acquired by the company Sugarmade now has permission to cultivate, transport, distribute, make retail deliveries and also manufacture products. It is a major development for the company in a lucrative market and it now remains to be seen if the stock can add to its gains through the course of the day.