Business
Demand Brands CEO Letter to Shareholders and the Year Ahead
Demand Brands CEO Letter to Shareholders and the Year Ahead.
About this update from Demand Brands, Inc.
[{"type":"text","content":"WATSONVILLE, CA / ACCESSWIRE / May 12, 2022 / Pacific Technologies Group, Inc. AKA Demand Brands, Inc. (OTC PINK:DMAN), ("Company" or "DB") http://dman.co, a leading vertically integrated cannabis company, is pleased to publish this Letter from its CEO to its Shareholders.TO OUR SHAREHOLDERS:Demand Brands passed a major milestone in Q1 of this year: the Company acquired CF3 SPV 1, LLC, a fully vertically integrated cannabis business ("CF3"). This acquisition defines the path forward to achieve increased value for our shareholders: Vertical Integration / Innovation / Optimization "VIO". This game plan is now coming to fruition. The acquired businesses collectively generated a revenue of $4.1 million and $1.4 million in adjusted EBITDA in 2020 & 2021, respectively, based on CF3's unaudited financials.I was part of the team that built Viridi Farms, a wholly-owned subsidiary of CF3. Viridi Farms started in 2017 with zero SF under management. Today Viridi manages smart farms for enterprises with 236K SF of cultivation, processing, and nursery management. In 2020, Dawn R. Loos, your Chief Compliance Officer, Kevin Sparks, your Chief Operating Officer, and I spearheaded a brand & supply management venture, which yielded $24M in revenue and 11% in adjusted EBITDA margin in its first year of operations. This translated into 198% return on investment. By 2021, our real estate portfolio had grown to over 200K SF. We took that opportunity to build a cannabis real estate holdings segment within our business by creating Zenith Land Management LLC, a real estate holding company. Viridi Farms transferred our real estate leasehold interests from Viridi Farms to Zenith Land Management.At the end of 2021, CF3 acquired Viridi Farms and Zenith Land Management. CF3 appointed us as the DB management team to build a brand and supply management segment by (i) leveraging our network of 120 retail locations and 5 wholesale distributors, and (ii) directing acquisitions of retail brands.CF3 also controls the exclusive rights to the intellectual property for MBX Research's patented crop protection and cultivation of microbial nutrients. The technology has proven to increase yield by up to 30% and increase THC levels to up to 33%. MBX Research partnership has increased the value proposition of Viridi's partner e...