Resonate Blends Provides Shareholder Update - Seite 2

After completion of our due diligence, we signed a non-binding letter of intent (LOI) with Pegasus Specialty Vehicles, LLC (“Pegasus”) on April 21, 2023. This opportunity in the rapidly growing clean energy sector presents a unique opportunity for our shareholders and is consistent with our perspective of value-based investing. Pegasus 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. The leadership team from Pegasus is well known and respected throughout the industry and their relationships have created a nationwide network of distributors to sell their buses and specialty vehicles in all 50 U.S. states, Canada, Micronesia, Guam, the U.S. Virgin Islands and the Caribbean.

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 Peterbilt, Zeus Electric Chassis, Hyperion Motors and Via Motors. There is a lot more to know about Pegasus and its future growth plans, but we will save this information for an expected later announcement.

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.

Geoff Selzer
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.