ILST
International Star, Inc.

Press Release

For Immediate Release

INTERNATIONAL STAR ANNOUNCES INITIAL CLOSE OF ACQUISITION

OF BUDDING EQUITY INC. AND CONCURRENT INSTITUTIONAL FINANCING

ILST’s initial acquisition under its new management

is a revenue producing cash-flow-positive company

Middletown, DE, August 24, 2022 -- International Star, Inc. (OTC:ILST) (the "Company" or “ILST”) today announced that it has entered into a transaction to acquire Budding Equity, Inc., (The “Acquiree” or “BEi”) a Canadian company that partners with movie studios and celebrities to monetize their intellectual property (IP) in the burgeoning global cannabis industry, using best in class manufacturers and distributors.

The Company has closed on an initial 6% stake in BEi and has secured an option to acquire the remaining 94% within 12 months (the “Transaction”). In addition, the Company is providing BEi with a senior secured loan of up to approximately $545,000 to expand inventory and spur sales growth.

Capital for the Transaction was provided by Leonite Fund I, LP, a family office based in New York.

Selected Highlights of Budding Equity Inc.:

• BEi currently generates royalties via sales in two segments:
  • Royalty revenue generated from celebrity cannabis strains (the “Cannabis Segment”) that are sold across 6 states and projected to increase to 10 states by Q4 2022 or Q1 2023.
  • Royalty revenue generated by sales of licensed and branded hardware (the “Hardware Segment”).
• Historical and projected figures for the Cannabis Segment are:
  • 2021 royalty generating revenue of approximately $4,240,000
  • Estimated year to date 2022 royalty generating revenue of $3,400,000
  • Projected full year 2022 royalty generating revenue of $5,000,000 on existing products
• Lifetime product sales in which BEi receives royalties estimated to be in excess of $10,000,000
• Additional licensing and product releases with new celebrities are in development and are expected to come online in 2023.
• A new joint venture has been formed through which BEi intends to directly manufacture and distribute its branded hardware products, which is expected to deliver increased margins when compared to the licensing business model.

Commenting on the transaction, Nochum Greenberg, the Company’s interim CEO and Chairman of the Board, stated: “With this transaction, the Company has taken the first step on its strategic plan to build International Star into a cashflow producing company that will realize benefit for all shareholders. We greatly look forward to working with the management team of BEi and assisting in its growth initiatives.”

ABOUT INTERNATIONAL STAR  

International Star Inc. has historically been focused on mineral property interests. In June 2022, a controlling stake in International Star was acquired by ILST Holdco LLC.  Under its new management, the Company’s strategic objective is to build a successful and financially robust enterprise which will consistently create and build stakeholders' value. More information about ILST can be found at https://www.otcmarkets.com/stock/ILST/disclosure.

ABOUT BUDDING EQUITY

Budding Equity Inc. (BEi), through its Licensing & Consumer Products, has changed how the markets look at accessing and investing in the cannabis industry. Founded in 2015, BEi has emerged as an industry leader, partnering with major brands on licensing and marketing cannabis accessories, providing asset management guidance and educating senior executives on navigating this new and complex industry. Budding Equity Inc.’s unique expertise in both the regulatory and cultural aspects of the cannabis market has cemented its reputation as a credible market resource in the industry. www.ilstinc.com/buddingequity

SAFE HARBOR STATEMENT

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," “plan,” project[ed],” "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include but are not limited to: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance.

CONTACT:

International Star, Inc.

600 N Broad Street Suite 5
Middletown, DE 19709

email: investors@ilstinc.com