CALABASAS, Calif., June 21, 2023 (GLOBE NEWSWIRE) -- Resonate Blends, Inc. (OTCQB: KOAN) ("Resonate Blends" or the "Company") is pleased to report it has entered into a definitive Agreement and Plan of Merger (The "Agreement") to complete an acquisition of Pegasus Specialty Vehicles, LLC ("Pegasus").
The Ohio-based company is an innovative leader in the low-emission and zero-emission electric vehicle ("EV") and emerging hydrogen fuel cell technology for school buses and specialty vehicles. Pegasus currently has a substantial production backlog and a nationwide network of dedicated distributors. Resonate Blends and Pegasus signed the binding Agreement on June 20, 2023 and will now work towards the closing conditions outlined in this transaction.
Resonate announced its intentions last month through a Shareholder Update Letter to pursue new opportunities for the public holding company to both increase value opportunities for current shareholders and to also inject new investment into the emerging EV and hydrogen fuel cell bus and specialty vehicle markets. Once the closing conditions outlined in the Agreement have been met, Pegasus will enter into the public company in exchange for $60 million pre-money valuation preferred stock.
Pegasus has developed strategic partnerships with leaders in the EV and hydrogen fuel cell sectors, such as Peterbilt, Zeus Electric Chassis, Hyperion Motors and Via Motors. These partners, along with Pegasus, are expected to play pivotal roles in the transformation of school buses and specialty vehicles from traditional diesel to both EV and hydrogen technology vehicles. There are substantial state and national subsidy programs including the U.S. Environmental Protection Agency - which recently announced $400 million in grants to help school districts pay for alternative and low-emission buses as part of its 5-year, $5 billion dollar "Clean School Bus Program".
Completion of the Proposed Merger is subject to the satisfaction of closing conditions that are to be finalized as part of the Agreement. Accordingly, there can be no assurance that a closing will be consummated.
About Resonate Blends, Inc. (OTCQB:KOAN)
Resonate Blends is a Calabasas, CA-based portfolio of Cannabis Wellness and Lifestyle brands. The company created the Resonate System-a comprehensive system of interconnected experience targets to personalize consumers' relationship with Cannabis through its products. Koan Cordials, the world's first Cannabis Cordial and Resonate's flagship product line, was awarded the prestigious Gold Leaf Award for "Best New Brand" and a Clio Cannabis award for packaging and design. To learn more, please visit www.resonateblends.com
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 Securities and Exchange Commission.
Corporate Contact
David Thielen
Chief Investment Officer/Director
Resonate Blends, Inc.
david@resonateblends.com
571-888-0009
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