SUGARMADE, INC. (OTCMKTS:SGMD) Files An 8-K Other Events
Item 8.01 Other Events.
On September 18, 2020, Sugarmade, Inc. (the “Company”) signed a non-binding Letter of Intent (the “LOI”) with LMK Capital, LLC (“LMK”). Jimmy Chan, Chairman of the Board, Chief Executive Officer, Chief Financial Officer and majority stockholder of the Company, is majority owner of LMK. to the terms of the LOI, the parties agreed to negotiate toward entry into a definitive agreement (“Lease Agreement”) providing for the lease by the Company of certain real property of up to forty acres owned by LMK located in Northern California (the “Property”). If the parties enter into a Lease Agreement, the Company intends to operate a regulated and licensed cannabis cultivation business on the Property, which may occupy up to 5 acres of cultivation area. to the terms of the LOI, the Lease Agreement, if executed, will provide for payment by the Company of $20,000 per month during a startup phase. Thereafter, the Company would pay the greater of (i) $0.50 per square foot of cultivation area, or (ii) $20,000 per month. The LOI also provides that the parties will negotiate toward entry into a management services agreement between the parties.
The LOI is non-binding on the parties and there can be no assurance the parties will enter into the Lease Agreement or any other agreements.
FORWARD-LOOKING STATEMENTS: This Current Report on Form 8-K contains forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include statements the Company makes concerning plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. When used herein, the words “estimates,” “expects,” “anticipates,” “projects,” “forecasts,” “plans,” “intends,” “believes,” “foresees,” “seeks,” “likely,” “may,” “might,” “will,” “should,” “goal,” “target” or “intends” and variations of these words or similar expressions (or the negative versions of any such words) are intended to identify forward-looking statements. All forward-looking statements are based upon information available to the Company on the date hereof. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things, the matters discussed herein. All forward-looking statements apply only as of the date of this Current Report on Form 8-K and are expressly qualified in their entirety by the cautionary statements included herein. The Company undertakes no obligation to publicly update or revise forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events, except as required by law.
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About SUGARMADE, INC. (OTCMKTS:SGMD)
Sugarmade, Inc. is engaged in the supply of products to the quick service restaurant sub-sector of the restaurant industry. The Company is a distributor of paper products derived from non-wood sources. As of June 30, 2015, the Company’s operating unit, CarryOutSupplies.com, which is a producer and wholesaler of custom printed and generic takeout supplies served more than 3,000 quick service restaurants. It conducts its operations in an industry segment, including paper and paper-based products, such as paper cups, cup lids, food containers and others. Its products also include double poly paper cups for cold beverage, yogurt cups, ice cream cups, soup containers and plastic spoons. It is a manufacturer and distributor of tree free copy and printer paper products, made from sugarcane waste (bagasse) and bamboo for home and office environments under the Sugarmade brand name. It has also acquired a minority stake in various patents and products for seasoning and spices for food items.