Sugarmade, Inc. (OTCPK:SGMD) entered into a letter of intent to acquire a 40% stake in RMI Ventures for $0.6 million on June 29, 2022. 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.

Sugarmade will put into place a credit line facility (the “Facility”) in the amount of $650,000, the funds of which shall be designated for operational costs and working capital. The LOI with RMI Ventures covers a minority stake acquisition that includes the associated real estate, cannabis-related licenses and the business operation. The acquisition will include minority ownership of a 10-year cultivation license at the Property based on a cultivation canopy size and other information outlined in the license issued by the County of Lake, California.

The licensed outdoor canopy area at the Property covers 43,560 square feet of the total property, which measures 21.38 acres. The Parties propose to close the Acquisition by July 31, 2022.