Sugarmade, Inc. entered into a binding letter of intent to acquire Lemon Glow Company, Inc. for $23.3 million.
April 31, 2021
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Sugarmade, Inc. (OTCPK:SGMD) entered into a binding letter of intent to acquire Lemon Glow Company, Inc. on March 28, 2021. The transaction include all of Lemon Glow’s assets, interests, property, and rights, which includes six-hundred-forty acres of real estate located in Lake County, California. Sugarmade deposited $0.4 million in earnest money towards the acquisition. Lemon Glow executive team members Sam Luu and Ryan Santiago will become the core management team at Sugarmade’s cannabis cultivation site. The transaction is expected to close in thirty days from the effective date of the letter of intent.
Sugarmade, Inc entered into an amendment letter to acquire Lemon Glow Company, Inc. for $23.3 million on April 27, 2021. Pursuant to the terms, Sugarmade will pay $4.7 million in cash and $18.6 million in equity.
Sugarmade, Inc. entered into an agreement and plan of merger to acquire Lemon Glow Company, Inc. on May 12, 2021. Pursuant to the terms, Sugarmade will pay $0.28 million in cash, $3.98 million through the issuance of promissory notes, issuance of 660.6 million common shares and 2 million series B preferred stock. In case of termination under certain circumstances, Sugarmade will pay a termination fee of $0.1 million. Lemon Glow will also pay a termination fee of $0.1 million. The transaction is subject to approval from the boards of Sugarmade and Lemon Glow, approval from the shareholders of Sugarmade and Lemon Glow, regulatory approvals and appraisal rights. The transaction is approved by the board of Lemon Glow and unanimously approved by the board of Sugarmade and Lemon Glow. John Cacomanolis of Anthony L.G., PLLC acted as legal advisor for Sugarmade while Frank Hwu of CHH Law, P.C. acted as legal advisor for Lemon Glow.
Sugarmade, Inc. is a product and branding marketing company. The Company operates through two segments: paper and paper-based products and cannabis products delivery. The paper and paper-based products segment focuses on supply of disposable products to the quick-service restaurant and as an importer and distributor of non-medical personal protection equipment to business and consumers, via its Carry Out Supplies subsidiary. Carry Out Supplies is a producer and wholesaler of custom printed and generic supplies. The primary products are plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, edible packaging, food containers, soup containers, plastic spoons, and similar products. The Company also focuses on investing in cannabis real estate, cultivation, and wholesale sectors vs. cannabis retail operations. It is also engaged in selected cannabis and hemp projects. Its subsidiaries include SWC Group, Inc., NUG Avenue, Inc., and Lemon Glow Company, Inc.