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Sugarmade to Acquire Minority Stake in California Cannabis Cultivation Property.

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Vincent

MANews-(C)2009-2022

US-based product and branding marketing company Sugarmade, Inc. (OTC: SGMD) has signed a letter of intent toward the acquisition of 40% of the business and associated property known as RMI Ventures (d/b/a Jerusalem Grade Farm) located in Lake County, California, the company said.

According to the LOI, the parties agree to be bound to an agreement to complete a Definitive acquisition Agreement whereby Sugarmade will become a minority owner of RMI Ventures, controlling 40% of the equity of RMI Ventures.

Sugarmade management notes that the company plans to pursue the acquisition of additional equity in RMI Ventures next year as market conditions improve.

The RMI acquisition follows the company's recently announced collaborative cannabis cultivation contract with Cannabis Global, Inc. (OTC: CBGL) to produce approximately 25,000 pounds of "Fresh Frozen" cannabis, which Cannabis Global will use in its product lines for distribution throughout the California cannabis marketplace.

Fresh Frozen cannabis is cultivated to be immediately flash frozen upon harvest (instead of the traditional post-harvest drying and curing process).

As noted in the company's release dated May 4, Sugarmade and Cannabis Global signed a pre-booked, fixed-price contract in the amount of USD 700,000, which provides for cash payments from Cannabis Global to Sugarmade of USD 300,000 and notes for the balance of USD 400,000.

The LOI with RMI Ventures covers a minority stake acquisition that includes the associated real estate, cannabis-related licenses and the business...

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