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

NEW YORK, Jan. 24, 2022 (GLOBE NEWSWIRE) -- via InvestorWire – (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 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.

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