Business
Demand Brands (DMAN) Signs LOI to Acquire Three Premium Cannabis Operations
Demand Brands (DMAN) Signs LOI to Acquire Three Premium Cannabis Operations.
About this update from Demand Brands, Inc.
[{"type":"text","content":"SANTA MONICA, CA / ACCESSWIRE / December 9, 2021 / Demand Brands, Inc. (OTC PINK:DMAN), ("Company" or "DMAN"), announced today that the Company, via Pacific Technologies Group, Inc. http://www.pacifictechnologiesgroup.com, has entered into a Letter of Intent ("LOI") with CF3 SPV I, LLC, a holding company, consisting of a portfolio of Cannabis operating companies and intellectual property including Viridi Farms, 8T8 & MBX Research Inc. ("Businesses"), to acquire the Businesses in an all-stock transaction. The Businesses are, collectively, currently generating more than $20,000,000 in annual revenue at their present run rates and they have established cultivation and harvest facilities on the Central Coast of California and distribution contracts throughout the entire state. Some of the brands that the Businesses manage supply line for include High Times, Revelry Herb Co., TruLeaf, Lowell Herb Co., CanEx and GroupoFlor. More information on the Businesses can be found here: https://dman.co/ .The Company, subject to concluding its due diligence timely, anticipates formalizing an agreement prior to the end of the year. The LOI pegs the acquisition cost of the Businesses to completing an audit and obtaining third-party valuations for all the rolled-up, consolidated Businesses. It is expected that Andy Colehower, a senior executive in the wholesale food and beverage sector, will become the new CEO of the Company upon the completed transaction."We are excited to explore this opportunity with Demand Brands as we seek entry into the public markets. The primary focus is to execute and deliver success with vertical integration via consolidation. The blend of entities organized includes a best-in-class pool of talent in cultivation, plant health and nutrition, multi state consulting and brand management," stated Colehower.The Company has divested itself of the assets it had acquired from Viride Research Fund, LLC and has terminated the services of Ian Dixon as an Officer and Director. The Company has redeemed and returned to its treasury approximately 70 million shares of its common stock due to the divestiture. Peter Erdekian has resumed his acting CEO position. The Company's Common Stock Purchase Agreement with an Institutional Investment Fund, for $5,000,000 in equity funding, remains ...