Business
Demand Brands (DMAN) Completes Acquisition Of Vertically Integrated Cannabis Business
Demand Brands (DMAN) Completes Acquisition Of Vertically Integrated Cannabis Business.
About this update from Demand Brands, Inc.
[{"type":"text","content":"The All-Stock Transaction Is One of the Largest Acquisitions in U.S. Cannabis HistorySANTA MONICA, CA / ACCESSWIRE / March 7, 2022 / Demand Brands, Inc. (OTC PINK:DMAN), ("Company" or "DMAN") https://dman.co/, a business that sources, invests into and acquires Cannabis related companies that fit into its vertical integration strategy, including strategic partnerships with HIGH TIMES, True Leaf and other industry household names, announced today that the Company has completed the acquisition of CF3 SPV I, LLC, ("CF3"), in an all-stock transaction. CF3's unit holders will receive convertible Series E Preferred shares. that will be valued between USD 250 to 550 million, subject to an audit and valuation being prepared by Stanton Park Advisors LLC. CF3 currently generates more than USD 28 million in annual revenue at its current run rate.The acquisition provides DMAN with multiple cannabis businesses consisting of cultivation and processing, brand management operations, and wholesale and retail distribution, with the capability to forge a footprint across North America to leverage anticipated federal deregulation"CF3's seed to sale platform allows the Company to capture the entire value chain of the cannabis market," said Andrew Colehower, the incoming Chief Executive Officer of the Company. "CF3's highly efficient cultivation and supply line management paired with its patented microbial solutions allow the Company to create products including flowers, concentrates and distillates with THC content exceeding 30%. We are excited about the value this transaction creates for the Company."The Company's Board of Director appointments and key management posts will be announced in the coming days.Cultivation and ProcessingThe acquisition provides the Company with a portfolio of 11 managed licenses in California with access to 236,000 SF of cultivation space and 41,500 lbs. of cannabis cultivation and processing. CF3 has established cultivation facilities on the Central Coast of California and distribution contracts throughout the state. The acquisition provides a footprint for the Company to expand to 111,000 lbs. of cannabis cultivation and processing by 2026.Management Consulting and Brand ManagementCF3 offers well-known lifestyle brands strategic advice and consulting services to enter th...