Stocks trading in a range is not an uncommon occurrence but at the same time it should be noted that such stocks can eventually break out strongly as well. Hence, it may be a good idea to keep an eye on some of those stocks.
Trading Data
On Monday, DMAN stock fell 0.60% to $0.0168 with 5 million shares, compared to its average volume of 1.44 million shares. The stock moved within a range of $0.0150 – 0.0190 after opening trade at $0.0170.
Demand Brands (DMAN) Completes Acquisition Of Vertically Integrated Cannabis Business
Yesterday, the Demand Brands Inc (OTCMKTS:DMAN) stock was trading in a range but at the same time the company was in the news following a key announcement. The company, which is involved in investing and in acquisition of cannabis companies, announced yesterday that it had been successful in completing the acquisition of the company CF3 SPV I LLC.
The transaction was conducted entirely in stock. As per the terms of the transaction between the two parties, those who hold shares in CF3 are going to be given convertible Series E Preferred shares. Those shares are going to command a valuation in the range between 250 million to 550 million.
However, the valuation is only going to be finalised after a final audit as well as valuation of the whole thing is completed by the firm Stanton Park Advisors LLC. It may be a good time to start adding the Demand Brands stock to your watch lists.
Key Quote
“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.”
Technical Data
DMAN stock is trading above the 20-Day and 50-Day Moving averages of $0.0160 and $0.0151 respectively. However, the stock is trading below the 200-Day moving average of $0.0186.
