Resonate Blends Provides Shareholder Update

The Company Signs a Non-Binding Letter of Intent for a Transformational Transaction

CALABASAS, Calif., May 23, 2023 (GLOBE NEWSWIRE) -- Resonate Blends, Inc. (OTCQB: KOAN) (“Resonate Blends” or the “Company”) is pleased to report it has entered into a non-binding letter of intent (“LOI”) to complete an acquisition of Pegasus Specialty Vehicles, LLC (“Pegasus”). A Letter to Shareholders from Resonate’s Chairman and CEO Geoff Selzer follows:

Dear Shareholders,

When Resonate Blends first entered the public sector in late 2019, we made clear our mission was to provide shareholder value for the investors who believed in our commitment of demystifying cannabis to the emerging wellness market and creating innovative products designed to support intentional and mindful use as a core part of daily wellness. We believed we accomplished this goal with the creation of our award-winning Koan Cordials.

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 SEC status and our loyal investor base. We have worked hard over the years to maintain a healthy capital structure attractive to private companies looking to become public.