Executes Binding LOI to Create Dynamic New PubCo Targeting
Hospitality, Entertainment, and Multimedia Production
Transaction involves $70 million in real estate holdings and the
launch of new state-of-the-art multimedia flex space brand,
NEW YORK NY -- Feb. 23,
2023 -- InvestorsHub NewsWire -- Sugarmade, Inc. (OTC
Pink: SGMD) ("Sugarmade," "SGMD" or the "Company"),
product and branding marketing company investing in operations and
technologies with disruptive potential, is pleased to announce it
has entered into a Binding Letter of Intent (the "LOI"), dated
February 21, 2023, to acquire the real estate assets and businesses
of Treasure Mountain Holdings, LLC ("Treasure Mountain"), and
Victorville Treasure Holdings, LLC ("Victorville
believes the full resolution of this strategic process (the
"Proposed Transactions") will result in two new dynamic growth-oriented business
entities: a legacy OTC company engaged in the legal cannabis
marketplace and a new NASDAQ listed company involved in
hospitality, entertainment, and multimedia flex-makerspace
operations that holds significant real estate and other assets away
from the "plant-touching" cannabis arena.
structures and scenarios for the Proposed Transactions have been
identified by both parties. Following full review and input from
legal counsel and advisors, the parties will select the plan that
is in the best interests of shareholders and principals.
Real estate assets
included in the LOI are the Hilton Garden Inn Palm Springs/Rancho
Mirage and the Holiday Inn Victorville. Both are located in
California and carry a combined value of $70 million.
In addition to the
intrinsic value of the real estate controlled by Treasure Mountain
and Victorville Treasure, to maximize space utilization and
increase revenue and brand awareness at these properties, the
Company will introduce TheMediaBox, a new state-of-art branded
multimedia flex-makerspace concept targeting aspiring content
TheMediaBox is a
membership-driven multimedia production facility that offers a
unique and innovative approach to flex space by providing a
creative environment for individuals and groups to experiment,
produce, and showcase various forms of media such as videos, music,
graphics, animation and more. The space is designed for hobbyists,
educators, media enthusiasts, and professionals to hone their
skills, connect with others, collaborate, and create compelling
revenue by collecting rent from its customers, as well as by
offering value-added services such as state-of-art multimedia
equipment, software, accessories, and multimedia
Another source of
powerful synergies in this deal is
CarryOutSupplies.com, a wholly-owned subsidiary of
Sugarmade that is uniquely suited to provide substantial support
and intrinsic value to each real estate property.
CarryOutSupplies.com serves clients nationwide as a leader in paper
and plastic take-out supplies, including customized products.
Businesses trust and rely on CarryOutSupplies.com because it offers
a wide array of high-quality products ranging from custom plastic
cold cups to logo-printed food containers.
"This deal will carry
multiple synergistic elements and tremendous value creation,"
stated Jimmy Chan, CEO of Sugarmade. "TheMediaBox is an idea whose
time has come, and this is the perfect vehicle to launch it. We are
embarking on a new chapter that stands to deliver significant value
to our shareholders as we expand our asset base and revenue streams
and diversify our model with an eye toward a major exchange
Completion of the
Proposed Transaction is subject to a number of conditions and
contingencies outlined in the LOI, including but not limited to,
the completion of mutually satisfactory 60-day due diligence period
and execution of a definitive agreement. No
assurances can be made that the parties will successfully negotiate
and enter into the definitive agreement, or that the proposed
transaction will be consummated on the terms or time frame
currently contemplated, or at all. Any transaction would be subject
to board and equity holder approval of both companies, regulatory
approvals, and other customary conditions.
Pink: SGMD) is a product and branding marketing company
investing in operations and technologies with disruptive potential.
Our brand portfolio includes CarryOutSupplies.com, SugarRush™, J
Grade Farm and Lemon Glow.
more information, please visit www.Sugarmade.com.
This release contains "forward-looking statements" within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements also may be included in other publicly available
documents issued by the Company and in oral statements made by our
officers and representatives from time to time. These
forward-looking statements are intended to provide management's
current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to
be valid. They can be identified by the use of words such as
"anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "would," "could," "will" and other words of
similar meaning in connection with a discussion of future operating
or financial performance. Examples of forward-looking statements
include, among others, statements relating to future sales,
earnings, cash flows, results of operations, uses of cash and other
measures of financial performance.
Because forward-looking statements relate to the future, they are
subject to inherent risks, uncertainties and other factors that may
cause the Company's actual results and financial condition to
differ materially from those expressed or implied in the
forward-looking statements. Such risks, uncertainties and other
factors include, among others, such as but not limited to; economic
conditions, changes in the laws or regulations, demand for products
and services of the company, the effects of competition,
uncontrollable forces of nature and other factors that could cause
actual results to differ materially from those projected or
represented in the forward-looking statements. Any forward-looking
information provided in this release should be considered with
these factors in mind. We assume no obligation to update any
forward-looking statements contained in this report.
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