Sugarmade Signs Binding LOI to Enter Rare Cannabinoid Market via License Agreement for Patented THC-V Rich Chemovars

Rhea-AI Summary

Sugarmade, Inc. (OTC Pink: SGMD) has signed a binding Letter of Intent with GenCann, Inc. to cultivate cannabis chemovars rich in Tetrahydrocannabivarin (THC-V). The five-year license will allow Sugarmade and its partners to grow high THC-V strains, starting cultivation in Spring 2022 in California. Initial products will include THC-V-rich smokeable flower and gummy candies. GenCann's chemovars, covered by U.S. patents, are expected to outperform current THC-V products available on the market. This initiative aims to attract both mainstream consumers and pharmaceutical partners.

Positive

• Strategic partnership with GenCann for exclusive THC-V rich chemovars.
• Plans to cultivate high-yield THC-V strains with up to 8% THC-V content.
• Introduction of innovative products including smokeable flowers and gummy candies.
• Significant market differentiation by utilizing real cannabis plants rather than synthetic processes.

Negative

• None.

NEW YORK, Jan. 24, 2022 (GLOBE NEWSWIRE) -- via InvestorWire – Sugarmade, Inc. (OTC Pink: SGMD) ("Sugarmade", "SGMD" or the "Company") an emerging leader in the licensed cannabis sector, is pleased to announce the signing of a binding Letter of Intent (the “LOI”) with GenCann, Inc. (“GenCann”), the exclusive licensor for a set of cannabis chemovars particularly rich in the cannabinoid Tetrahydrocannabivarin (THC-V) (the “GenCann Chemovars”).

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.

“While THC-V is sometimes referred to as a ‘rare cannabinoid,’ we believe the term no longer applies relative to our planned cultivation effort using GenCann’s Chemovars,” commented Jimmy Chan, CEO of Sugarmade. “The test results from certified California laboratories of these chemovars are certainly impressive, with THC-V yields in flower of up to 8%. We think the GenCann Chemovars are a game-changer in the cannabinoid space. Sugarmade plans to make a substantial commitment to bring products based on THC-V to the California market and perhaps to other states in the future. Stay tuned for our upcoming product plan announcements.”

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.

Chan continued, “The THC-V smoking and edibles consumption experience is very different compared to traditional cannabis. Where legacy cannabis strains often produce a sedating effect, consumption of THC-V rich products produces a pleasant and uplifting effect. It’s a remarkable experience and we believe consumers will gravitate to it.”

In addition to seeking to supply the mainstream cannabis marketplace with THC-V products, Sugarmade also plans to seek pharmaceutical and nutraceutical partners for supply agreements as many of these companies are already stating their intentions to conduct trials or to produce products containing rare cannabinoids.

The cultivated THC-V cannabinoids from the GenCann Chemovars differ significantly from the current generation of THC-V products presently available in the marketplace, most of which are converted via a chemical process from hemp-based isolates. This generation of products is also very expensive, often priced in the $50 per gram range, and is typically not tested by certified laboratories. Additionally, the cannabinoids produced by the GenCann Chemovars differ from planned offerings by other companies that utilize genetically modified organisms, such as bacteria or yeast, to create cannabinoids outside of the cannabis plant varieties. All of the cannabinoids to be generated via the GenCann Chemovars and Sugarmade’s cultivation will be produced from real cannabis plants that have been specifically bred for this purpose and grown in an outdoor setting.

Sugarmade and GenCann believe outdoor cultivation of THC-V-rich strains will yield higher desirable cannabinoid content due to optimal ultraviolet light levels inherent in natural sunlight.

About THC-V
THC is found in the form of Tetrahydrocannabinolic acid (THCA) that is converted to THC during drying or under high heat. Similarly, THC-V in live plants is in the form of tetrahydrocannabivarin carboxylic acid (THCVA). THC and THC-V both bind to the cannabinoid receptors 1 (CB1) and 2 (CB2) although the exact effects of binding are not fully understood. Binding of CB1 by its endogenous ligands, anandamide or 2-arachidonoylglycerol, stimulates food intake (Silvestri, C., Di Marzo, V. 17 Cell Metabolism 475-490 (2013)). THC acts as an agonist of CB1 and stimulates appetite. THC-V has been shown to be a mild antagonist of CB1 and lessens sensations of hunger (Pertwee, R G. 153 British Journal of Pharmacology 199-215 (2008)). The ability of THC-V to act as an antagonist of CB1 has led to investigation of using THC-V to treat metabolic syndrome and obesity (Riedel, G., et al., 156 British Journal of Pharmacology 1154-1166 (2009)). Selection of a variety producing increased amounts of THC-V allows optimized isolation of THC-V which may be used in the treatment of metabolic syndrome.

About Sugarmade
Sugarmade, Inc. (OTC Pink: SGMD) is a product and branding marketing company investing in operations and technologies with disruptive potential. Our Brand portfolio includes CarryOutsupplies.com, SugarRush™, NUG Avenue, Lemon Glow and Budcars. Sugarmade is also the first licensee of the unique and patented GenCann, Inc. THC-V rich chemovars.

For more information, please visit www.Sugarmade.com.

FORWARD-LOOKING STATEMENTS: This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others, such as but not limited to; economic conditions, changes in the laws or regulations, demand for products and services of the company, the effects of competition, uncontrollable forces of nature and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements.

Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.

Corporate Contact:
Jimmy Chan
+1-(888)-982-1628
info@Sugarmade.com 

Investor Relations Contact:
EDM Media, LLC
https://edm.media

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

FAQ

What is the recent announcement by Sugarmade, Inc. (SGMD)?

Sugarmade announced a binding Letter of Intent with GenCann to cultivate cannabis chemovars rich in Tetrahydrocannabivarin (THC-V).

How long is the license agreement for Sugarmade (SGMD) with GenCann?

The license agreement is for a duration of five years.

What products will Sugarmade (SGMD) introduce based on the cultivation of THC-V chemovars?

Sugarmade plans to introduce THC-V-rich smokeable flower and gummy candy products.

What is the significance of THC-V in Sugarmade's cultivation plans?

THC-V is believed to provide a different consumer experience, offering uplifting effects compared to traditional cannabis.

Where will Sugarmade (SGMD) start its THC-V cultivation program?

The cultivation program will begin in Lake County, California, in Spring 2022.