Sugarmade Inc (OTCMKTS:SGMD) Stock Gains Momentum: What Next?

Positive updates from a company can often lead to considerable gains in its stock and that is what happened with the stock of the California based vertically integrated cannabis marketplace Sugarmade Inc (OTCMKTS:SGMD).

Yesterday, the stock was on the move and soared by as much as 18% after the company provided an update with regards to the sort of progress it has made in its Nug Avenue operations. In addition to that, the company also provided an update about the acquisition of cannabis licenses in California.

Nug Avenue is the cannabis delivery business that was launched by the company earlier on this year in March. In the update provided by the company, it was announced that the Nug Avenue operations have actually grown at a strong pace over the past few months and at the end of June, it boasted of as many as 10000 unique members.

As a matter of fact, the company also noted that the numbers recorded by Nug Avenue are actually higher than the internal projections that had been made by Sugarmade. Jimmy Chan, the Chief Executive Officer of the company, state that more updates about Nug Avenue are going to be released soon.

Market Reaction:

On Thursday, SGMD stock surged 17.50% at $0.0024 with more than 109.34 million shares, compared to its average volume of 132.41 million shares. The stock has moved within a range of $0.0020 – 0.0024 after opening the trade at $0.0021. Over the past 52-week, the stock has been trading within a range of $0.0010 – 0.0200.