Business
Sugarmade Signs Binding LOI to Acquire Cultivation Operation with Potential for 64 Tons of Cannabis Flower Production Per Annum
Sugarmade Signs Binding LOI to Acquire Cultivation Operation with Potential for 64 Tons of Cannabis Flower Production Per Annum.
About this update from Sugarmade, Inc.
[{"type":"text","content":"\n NEW YORK, April 01, 2021 (GLOBE NEWSWIRE) -- via InvestorWire -- Sugarmade, Inc. (OTCMKTS:SGMD) (“Sugarmade,” “SGMD” or the “Company”) is excited to announce the signing of a Binding Letter of Intent (the “LOI”) for the acquisition of Lemon Glow Company, Inc., a California corporation (“Lemon Glow”), including all of Lemon Glow’s assets, interests, property, and rights, which includes six-hundred-forty (640) acres of real estate (the “Property”) located in Lake County, California, outside of the Commercial Cannabis Cultivation Exclusion Zones. As stipulated in the LOI, thirty-two (32) acres of the Property have been designated for outdoor cannabis cultivation. Sugarmade and Lemon Glow management have agreed that the annual potential cultivation yield at the Property is approximately four thousand (4,000) pounds of dry trimmed cannabis flower per acre, or approximately 128,000 pounds of dry trimmed cannabis flower per year. Lemon Glow executive team members Sam Luu and Ryan Santiago will, according to the LOI, become the core management team at Sugarmade’s cannabis cultivation site at the Property, with both continuing on with the business operation under three-year management contracts. The core management team has more than 30 years of combined experience in cultivation. Sugarmade has already deposited $400K in earnest money towards the acquisition. The Company has thirty (30) days to close the acquisition from the effective date of the LOI, which has been established as March 28, 2021. “As discussed in our recent corporate update, we are taking aggressive steps toward the establishment of full farm-to-door cannabis operations at scale in the California cannabis marketplace, and this acquisition represents a major part of that strategy,” commented Jimmy Chan, CEO of Sugarmade. About Sugarmade, Inc. Sugarmade, Inc. (OTCMKTS:SGMD) is a product and branding marketing company investing in operations and technologies with disruptive potential. Our Brand portfolio includes CarryOutsupplies.com, SugarRush™, NUG Avenue and Budcars. For more information, please visit www.Sugarmade.com. FORWARD-LOOKING STATEMENTS: This release contains \"forward-looking statements\" within the meaning of the safe harbor provisions of the U.S. Private ...