Demand Brands Inc. (OTCMKTS:DMAN), which is well-known for marketing products via its Lucky Chief brand has entered into a Common Stock Purchase Agreement (CSPA) for a $5 million equity investment into their company, with an Institutional Investment Fund.
The CSPA is currently one of the biggest student and alumni venture funds in the United States. At present, Demand Brands needs to audit its financial statements, so it can become a fully reporting SEC company and up list. They are looking to engage an auditor and up list by the end of 2021. The Institutional Investment Fund has been given the option to buy around $5 million worth of company stock too, via warrant agreements.
Ian Dixon, Chairman & CEO of Demand Brands is thrilled to have Institutional Investment Fund on board and a new and incredibly valuable source of capital to further their growth. Alan Ochoa, Senior Analyst of the Fund says they have run due diligence on Mr. Dixon’s business model and visited their corporate office in Sacramento, after which, they feel that both Demand Brands and Lucky Chief have barely explored their vast potential for growth over the next couple of years. A vertically integrated cannabis company with all the verticals including genetics ready to scale in two states, is not something that they often come across!
Market Reaction:
On Wednesday, DMAN stock slid 15.88% at $0.0219 with more than 18.08 million shares, compared to its average volume of 4.38 million shares. The stock has moved within a range of $0.0206 – 0.0250 after opening the trade at $0.0250.
