Dear Shareholders,
When
Since late 2019, we have been attempting to raise money to implement our business plan, including our planned acquisition strategy, but have not been able to secure all the funds necessary to do so for several reasons. The present economy without federal cannabis reform, the restrictions on commercial banking, the saturated nature of the cannabis industry, the strength of the illicit market and the decline in public investor interest in cannabis stocks over the past 18 months have all prevented this from happening. We have been very vocal in our belief that all stakeholders, from our employees, our customers and our financial community, need to be considered as we drive our strategy. We are clear that a relative startup in the cannabis industry, as a public company, does not serve those interests and have decided to set our sights on new opportunities.
We have recently commenced a search for other businesses that may benefit our existing shareholders and bring in new investors and opportunities. As a result, we were recently approached with a new opportunity for the public company that we feel may bring improved commercial and shareholder value. We’ve been told by many that Resonate is attractive to private companies due to our capital structure, fully-reporting
After completion of our due diligence, we signed a non-binding letter of intent (LOI) with
The Pegasus advantage is in its flexible business model of addressing the needs of the traditional, hybrid electric, full electric (EV) battery and hydrogen fuel cell markets. To leverage their position in this emerging market, Pegasus has developed strategic partnerships with leaders in the EV and hydrogen fuel cell sectors, such as
To summarize, we are excited to let the investment community and our loyal shareholders know we are moving our public holding company towards an opportunity we all feel will provide a clearer path to near term revenue opportunities, revenue growth and overall profitability than what our current business can provide.
As always, we are grateful for our shareholders’ support and patience as we continue the process towards our expected closing of Pegasus. We expect to be in contact over the coming weeks detailing our progress towards this exciting opportunity.
In the meantime, stay safe, stay healthy.
CEO
Completion of the Proposed Merger is subject to the negotiation of a definitive merger agreement and related documentation, approval of the Proposed Merger by our Board of Directors, the completion of due diligence to the satisfaction of both parties, financing and satisfaction of other conditions that are to be negotiated as part of the merger agreement. Accordingly, there can be no assurance that a merger agreement will be entered into or that the Proposed Merger will be consummated.
About
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our product development programs and any other statements that are not historical facts. Such statements involve risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from management’s current expectations include those risks and uncertainties relating to our ability to raise capital, the regulatory approval process, the development, testing, production and marketing of our drug candidates, patent and intellectual property matters and strategic agreements and relationships. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law. A complete discussion of the risks and uncertainties that may affect the Company’s business, including the business of any of its subsidiaries, is included in “Risk Factors” in the Company’s most recent Annual Report on Form 10-K as filed by the Company with the
Corporate Contact
Chief Investment Officer/Director
david@resonateblends.com
571-888-0009
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/41136796-ae0c-4e35-80f4-a0f81e8b64fe
![](https://ml.globenewswire.com/media/NDc3NDBkYzYtNGZhMS00MTQ1LTgwNTYtZGNhMDU0NTBmOTBlLTEyNDU0MTE=/tiny/Resonate-Blends.png)
Pegasus Specialty Bus
![](https://ml.globenewswire.com/media/41136796-ae0c-4e35-80f4-a0f81e8b64fe/medium/pegasus-specialty-bus.jpeg)
Pegasus Specialty Vehicles, LLC signs LOI to be acquired by Resonate Blends, Inc.
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