Following a major announcement from Demand Brands (OTCMKTS:DMAN) yesterday with regards to a substantial supply agreement, the company’s stock flew and ended up with gains of as much as 24% for the day. The company announced that it had entered into the supply agreement in question back on March 17, 2022.
Trading Data
On Wednesday, DMAN stock soared 24.55% to $0.0137 with more than 39.29 million shares, compared to its average volume of 1.98 million shares. The stock moved within a range of $0.0130 – 0.0215 after opening trading at $0.0179.
Demand Brands (DMAN) Enters Into Exclusive Arrangement With Sun Supply LLC To Distribute 180k LB’s Of Pharma Grade Cannabis A Year
As per the provisions of the latest supply agreement, the company is going to be supplied with as much as 180 pounds of cannabis flower on an annual basis. Demand Brands is then going to sell the cannabis flower by way of its wholesale distribution networks and the retail channels.
However, that is not the only significant thing about the deal. The supply agreement is also going to help Demand Brands in growing its top line significantly on an annual basis.
The company noted that the agreement is going to help in boosting its top line revenues by as much as $258 million every year. That is a significant figure and perhaps the rally in the stock that was seen yesterday was not entirely surprising. It now remains to be seen how the stock performs through the rest of this week. It could be a good move to add Demand Brands to your watch lists.
Key Quote
DMAN CEO Andrew Colehower commented, “The DMAN Sun Supply relationship has been in the making for the past 6 months. This represents a partnership with a Multi-State Operator which will allow DMAN to enter the 3.0 Tier of Cannabis, one that consists of large-scale pharma grade GMP certified facilities.Sun Supply will provide us with high volume, premium, consistent, THC rich, pharma grade cannabis. We have already commenced efforts to expand our robust trading desk and enter distribution agreements with top tier brands to sell the Sun Supply cannabis. This is a major addition to the Demand Brands portfolio”
Technical Data
DMAN stock is trading below the 20-Day and 50-Day Moving averages of $0.0143 and $0.0148 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0188.
