Sugarmade Executes Binding LOI to Create Dynamic New PubCo Targeting Hospitality, Entertainment and Multimedia Production Markets

February 23, 2023

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The proposed transaction involves $70 million Holding in real estate and launching new state-of-the-art multimedia flex space brand TheMediaBox

New York, February 23, 2023 /PRNewswire/ — Sugarmade, Inc. (OTC: SGMD ) (“Sugarmade,” “SGMD” or the “Company”) is a product and brand marketer investing in disruptive potential operations and technologies Company, is pleased to announce that it has entered into a binding letter of intent (“Letter of Intent”) dated February 21, 2023Acquisition of Treasure Mountain Holdings, LLC (“Baoshan”) and Victorville Treasure Holdings, LLC (“Victorville Treasure”).

Management believes that the full resolution of this strategic process (the “Proposed Transaction”) will result in the creation of two new, dynamic, growth-oriented business entities: a traditional over-the-counter company engaged in the legal cannabis market and a new Nas DAK-listed company involved in hospitality, entertainment, multimedia flex-makerspace businesses with substantial real estate and other assets far removed from the “plant-touch” cannabis space.

The parties have identified several potential structures and scenarios for the proposed transaction. Following a thorough review and opinion from legal advisors and advisors, the parties will select the plan that best serves the interests of shareholders and settlors.

The real estate property included in the LOI is the Hilton Garden Inn Palm Springs/phantom ranch and Holiday Inn Victorville.both are located in california and carry the combined value of $70 million.

In addition to the intrinsic value of the real estate it controls Baoshan and Victorville Treasure, to maximize space utilization at these properties and increase revenue and brand awareness, the company will launch TheMediaBox, a new state-of-the-art branded multimedia flex-makerspace concept for aspiring content creators .

TheMediaBox is a member-driven multimedia production facility that offers a unique and innovative A flexible space approach. The space is designed for hobbyists, educators, media enthusiasts and professionals to hone their skills, connect with others, collaborate and create compelling content.

TheMediaBox generates revenue by collecting rental fees from customers and providing value-added services such as state-of-the-art multimedia equipment, software, accessories and multimedia education.

Another source of strong synergies in this deal is the CarryOutSupplies.com website, a wholly owned subsidiary of Sugarmade, is uniquely suited to provide substantial support and intrinsic value to each property. CarryOutSupplies.com serves customers nationwide as a leader in paper and plastic takeout supplies, including custom products. Businesses trust and rely on CarryOutSupplies.com for its wide range of quality products, from custom plastic cold mugs to logo printed food containers.

“This transaction will bring multiple synergies and significant value creation,” the statement said Chen Zhiming, CEO of Sugarmade. “TheMediaBox is an idea at the right time and this is the perfect vehicle to launch it. We are starting a new chapter as we expand our asset base and revenue streams and diversify our model with an eye toward listing on large exchanges. “

Completion of the proposed transaction is subject to a number of conditions and contingencies outlined in the letter of intent, including, but not limited to, completion of a mutually satisfactory 60-day due diligence period and signing of a definitive agreement. There can be no assurance that the parties will successfully negotiate and reach a definitive agreement, or that the proposed transaction will close on the currently anticipated terms or timeframe, or at all. Any transaction is subject to the approval of the boards and shareholders of both companies, regulatory approvals and other customary conditions.

About Sugar

Sugarmade, Inc. (OTC: SGMD) is a product and brand marketing firm that invests in operations and technologies with disruptive potential. Our portfolio of brands includes CarryOutSupplies.com, SugarRush™, J Grade Farm and Lemon Glow.

For more information, please visit www.Sugarmade.com.

Forward-Looking Statements: This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may also be contained in other public documents and oral statements issued by the Company 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”, “anticipate”, “strategy”, etc. “Future,” “may,” “could,” “should,” “would,” “likely,” “will” and other words of similar meaning in connection with discussions of future operating or financial results. Examples of forward-looking statements include statements regarding future sales, earnings, cash flows, results of operations, use 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 could cause the company’s actual results and financial condition to differ materially from those expressed or implied by the forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to; changes in economic conditions, laws or regulations, demand for the Company’s products and services, the effects of competition, uncontrollable forces of nature and other factors that may cause actual results to differ from those of forward-looking Factors that could differ materially from the results projected or stated in the statement. Any forward-looking information provided in this press release should take these factors into account. We undertake no obligation to update any forward-looking statements contained in this report.