Resonate Blends, Inc., maker of cannabis-infused Koan Cordials, has entered into a definitive agreement and plan of merger to complete the acquisition of Pegasus Specialty Vehicles, LLC.
The Ohio-based company is a leader in low-emission and zero-emission electric vehicles and emerging hydrogen fuel cell technology for school buses and specialty vehicles. Pegasus has a production backlog and a nationwide network of dedicated distributors.
Resonate Blends and Pegasus signed the binding agreement on June 20 and will work toward the closing conditions outlined in this transaction.
Resonate announced its intentions last month in a letter to shareholders, noting it aims to pursue new value opportunities and 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 Peterbilt, Zeus Electric Chassis, Hyperion Motors and Via Motors. These partners, along with Pegasus, are expected to transform school buses and specialty vehicles from traditional diesel to both EV and hydrogen technology vehicles. There are substantial state and national subsidy programs, including through 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 five-year, $5 billion dollar “Clean School Bus Program.”
Completion of the merger is subject to the satisfaction of closing conditions that are to be finalized as part of the agreement.