Sugarmade To Benefit From Its Niche In The Cannabis Industry

Sugarmade Inc (OTCMKTS:SGMD) might be one of the lesser-known companies in the cannabis industry but it is one of the rapidly rising firms dealing with the supply of cannabis growth equipment.

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Most of the major companies in the cannabis industry have been focusing on cannabis growth and distribution. This has been the trend ever since marijuana gained legal status especially in North America including Canada and most states in the U.S after the 2018 Farm bill was passed. Since then the cannabis growth industry has been flooded with new companies. Sugarmade has entered the market through a different approach that involves the provision of hydroponic equipment for cannabis growth.

Sugarmade has been experiencing heavy demand for hydroponic cultivation equipment for hemp cultivation. Most of the demand comes through Sky Unlimited LLC which Sugarmade recently acquired. The firm runs a highly successful business that does online supply of equipment through the website AthenaUnited. The website has been gaining traffic especially from customers looking for cannabis growth supplies.

Sugarmade’s acquisition of Sky Unlimited LLC has thus already started to generate value by bringing on board major commercial agricultural cultivation businesses. The acquisition was therefore strategic because it will allow Sugarmade to tap into the commercial and wholesale customer base.

Why is hydroponics becoming popular among cannabis growers?

Hydroponics is not a new technology and is particularly ideal for crop growth especially because it optimizes the use of resources including space and water while also reducing wastage. Hydroponics also allows the farmer to fully take control of the growth environment as well as the yield quality. These factors make hydroponics farming quite attractive for cannabis farming.

Hydroponics is also ideal for cannabis growth because it does not require soil for growth. Growth facilities can, therefore, be set up at any location including indoors. This type of approach might be more expensive than traditional growing on soil but it also allows farmers to grow their crop throughout the year to no seasonal effect and the crop is also not affected by weather changes or contaminants. The technology can, therefore, improve crop yields, thereby allowing the growers to earn more.

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