Sugarmade, Inc. announced the signing of a binding Letter of Intent with GenCann, Inc., the exclusive licensor for a set of cannabis chemovars particularly rich in the cannabinoid Tetrahydrocannabivarin (THC-V). Under the terms outlined in the LOI, Sugarmade and its licensed cannabis cultivator partners will be granted a 5-year license to cultivate what the Company believes to be some of the highest THC-V-containing strains in existence. Sugarmade and GenCann plan to begin clone production immediately upon the signing of the final agreement with a cultivation program beginning in Lake County, California, this spring.

The GenCann Chemovars are covered by multiple issued U.S. patents, including patent numbers PP33212 for the plant called “V1,” patent number PP33211 for the plant called “V2” and patent number PP33210 for the plant called “V3.” All three of these chemovars contain abundant THC-V, with the V1 variety being especially distinguished by producing more THC-V than THC by percent weight. The V3 strain, also known as Skelator, will be the predominant strain utilized for spring cultivation due to its early finishing characteristics and its higher THC-V content, although the V1 and V2 varieties are also planned for Sugarmade's cultivation effort. Sugarmade plans to utilize the THC-V rich biomass in a series of products it plans to introduce to the licensed California marketplace.

The first of these will be THC-V-rich smokeable flower and THC-V-rich gummy candies. In the future, Sugarmade plans to also produce distillate and isolate products based on its cultivated biomass.