2023-02-23 | OTCPK:SGMD | Press Release

Proposed Transaction entails $70 million in serious estate holdings and the launch of new point out-of-the-art multimedia flex space manufacturer, TheMediaBox

NEW YORK, Feb. 23, 2023 /PRNewswire/ — Sugarmade, Inc. (OTC Pink: SGMD) (“Sugarmade,” “SGMD” or the “Organization”), a item and branding marketing and advertising firm investing in functions and systems with disruptive potential, is pleased to announce it has entered into a Binding Letter of Intent (the “LOI”), dated February 21, 2023, to obtain the true estate belongings and organizations of Treasure Mountain Holdings, LLC (“Treasure Mountain“), and Victorville Treasure Holdings, LLC (“Victorville Treasure”).

$70 million in true estate holdings and the launch of a new state-of-the-artwork multimedia flex house brand name, TheMediaBox.

Administration thinks the full resolution of this strategic process (the “Proposed Transactions”) will end result in two new dynamic development-oriented business enterprise entities: a legacy OTC business engaged in the lawful hashish marketplace and a new NASDAQ outlined business associated in hospitality, amusement, and multimedia flex-makerspace functions that retains important true estate and other property away from the “plant-touching” hashish arena.

A number of opportunity constructions and scenarios for the Proposed Transactions have been identified by equally functions. Next comprehensive assessment and input from legal counsel and advisors, the parties will choose the system that is in the greatest passions of shareholders and principals.

Genuine estate belongings integrated in the LOI are the Hilton Garden Inn Palm Springs/Rancho Mirage and the Vacation Inn Victorville. Both are situated in California and carry a blended value of $70 million.

In addition to the intrinsic price of the actual estate controlled by Treasure Mountain and Victorville Treasure, to improve space utilization and raise income and manufacturer awareness at these houses, the Enterprise will introduce TheMediaBox, a new condition-of-artwork branded multimedia flex-makerspace principle focusing on aspiring information creators.

TheMediaBox is a membership-driven multimedia manufacturing facility that offers a special and modern tactic to flex area by delivering a creative surroundings for individuals and teams to experiment, deliver, and showcase a variety of types of media these as video clips, new music, graphics, animation and far more. The house is intended for hobbyists, educators, media fanatics, and specialists to hone their skills, link with some others, collaborate, and create compelling information.

TheMediaBox generates profits by accumulating hire from its prospects, as well as by giving benefit-extra companies such as state-of-artwork multimedia equipment, application, extras, and multimedia education.

Another source of highly effective synergies in this deal is CarryOutSupplies.com, a wholly-owned subsidiary of Sugarmade that is uniquely suited to deliver significant assistance and intrinsic worth to each and every actual estate house. CarryOutSupplies.com serves customers nationwide as a chief in paper and plastic take-out materials, like tailored goods. Enterprises have confidence in and count on CarryOutSupplies.com due to the fact it offers a extensive array of substantial-high quality products ranging from personalized plastic cold cups to symbol-printed meals containers.

“This offer will have numerous synergistic factors and huge value development,” stated Jimmy Chan, CEO of Sugarmade. “TheMediaBox is an plan whose time has occur, and this is the great motor vehicle to launch it. We are embarking on a new chapter that stands to produce sizeable price to our shareholders as we broaden our asset foundation and profits streams and diversify our model with an eye towards a key trade listing.”

Completion of the Proposed Transaction is subject to a selection of circumstances and contingencies outlined in the LOI, such as but not restricted to, the completion of mutually satisfactory 60-day thanks diligence interval and execution of a definitive agreement. No assurances can be produced that the get-togethers will effectively negotiate and enter into the definitive agreement, or that the proposed transaction will be consummated on the terms or time body presently contemplated, or at all. Any transaction would be matter to board and equity holder approval of both organizations, regulatory approvals, and other customary conditions.

About Sugarmade

Sugarmade, Inc. (OTC Pink: SGMD) is a item and branding promoting firm investing in functions and systems with disruptive likely. Our model portfolio consists of CarryOutSupplies.com, SugarRush™, J Grade Farm and Lemon Glow.

For additional data, be sure to stop by www.Sugarmade.com.

Ahead-Hunting STATEMENTS: This launch contains “ahead-on the lookout statements” in the meaning of the harmless harbor provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. Ahead-on the lookout statements also may well be included in other publicly readily available documents issued by the Business and in oral statements designed by our officers and reps from time to time. These forward-looking statements are intended to give management’s present-day expectations or programs for our foreseeable future functioning and economic overall performance, dependent on assumptions at present thought to be legitimate. They can be discovered by the use of words these as “foresee,” “intend,” “prepare,” “target,” “look for,” “believe that,” “project,” “estimate,” “expect,” “tactic,” “future,” “probably,” “may well,” “ought to,” “would,” “could,” “will” and other words of equivalent meaning in link with a dialogue of long run running or money efficiency. Examples of forward-wanting statements include things like, amongst others, statements relating to upcoming revenue, earnings, money flows, effects of operations, uses of funds and other measures of money general performance.

For the reason that ahead-on the lookout statements relate to the foreseeable future, they are subject matter to inherent hazards, uncertainties and other elements that may possibly cause the Firm’s genuine effects and economical situation to vary materially from those expressed or implied in the forward-searching statements. This kind of hazards, uncertainties and other variables contain, between other individuals, such as but not restricted to economic ailments, variations in the legislation or laws, demand for products and providers of the enterprise, the outcomes of level of competition, uncontrollable forces of character and other aspects that could bring about real outcomes to differ materially from all those projected or represented in the ahead-looking statements. Any forward-hunting facts delivered in this release really should be considered with these components in mind. We think no obligation to update any forward-wanting statements contained in this report.

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