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Demand Brands (DMAN) Lucky Chief Acquires Show Me State Cannabis Farm

SANTA MONICA, CA / ACCESSWIRE / June 8, 2021 / Demand Brands, Inc. (OTC Pink:DMAN), ("Company" or "DMAN"), announced today that its wholly owned subsidiary Pacific Technologies Group, Inc., http://www.pacifictechnologiesgroup.com, marketed under the brand "Lucky Chief" http://www.luckychief.com, has entered into a definitive arrangement agreement pursuant to which DMAN will acquire all of the issued and outstanding subordinate voting shares, multiple voting shares and super voting shares of the Show Me State LLC - Cannabis Farm (the 'Transaction').

Show Me State LLC - Cannabis Farm ("Show Me State LLC" https://luckychief.com/lucky-chief-ok/) is a 33-acre working farm with a 5500 sq ft indoor facility ("Farm") producing 120 lbs of exotic indoor flower every 8 weeks. Cloning bays in the Farm produce 2000 clones every 8 to 12 days on 10 acres of outdoor flower cultivation and the Company expects to harvest 45,000 plants this upcoming season. Included in the Transaction is the Show Me State LLC mobile drying and mobile extraction units and related IP.

Upon completion of the Transaction and formal integration the combined business will maintain operations in both California and Oklahoma, comprising 3 cultivation sites and an Oakland processing facility with a total capacity of 150,000 square feet. This will be in addition to the Company's Cannabis Outlet dispensary in Atwater CA, which serves both medicinal and recreational adult cannabis markets.

Key Transaction Highlights and Benefits:

  • Strong and Growing Multi-State Presence - bolsters Lucky Chief's expansion in US hubs and establishes a Midwest in core markets including Oklahoma, where the use of cannabis was recently legalized for medicinal purposes.
  • Creates a Profitable US MSO - with combined estimated 2021E Adjusted EBITDA of approximately $50 million with exceptional growth prospects moving forward.
  • Leverages Expert Operating Teams and Optimal Practices - from both Lucky Chief and Show Me State, enhancing key operational synergies by combining industry knowledge and successful strategies as well as state license application processes expertise.
  • Increases Scale Across Hub Markets - through vertical integration, the Company looks to become one of the leading U.S. cannabis businesses with retail, extraction, and cultivation operations.
  • Adds Premium Brands - to Demand Brand's portfolio of in-house brands and national brand partners to promote product lines of Lucky Chief to the Oklahoma market.

Ian Dixon, Chief Executive Officer of DMAN said: 'We believe the synergistic acquisition of the Show Me State businesses will allow us to rapidly scale. Our companies share similar customer values with a focus on core market sectors. The combination of Oklahoma and California offers us an opportunity to leverage our respective foundations as Show Me State LLC has an established presence giving us immediate entry into the medicinal space within Oklahoma."

About Lucky Chief - Lucky Chief is a lifestyle brand which pioneers the avenues of research, cultivation, production and distribution of cannabis and cannabinoids. Lucky Chief was one of the first licensed producers of cannabis concentrates in California out of their Type 7 Lab in Oakland CA and has their own in-house catalog of THC genetics. The vertically-integrated "seed-to-sale" operation has been on dispensary shelves since 2016. The brand also operates an in-house cannabis dispensary Cannabis Outlet with the flagship location under construction in Atwater, CA.

This press release includes 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms 'believes', 'belief', 'expects', 'intends', 'anticipates', "projects" 'will', or 'plans' to be uncertain and forward looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company's reports and registration statements filed with the Securities and Exchange Commission.

Press Contact:
connect@pacifictechnologiesgroup.com
323-967-7900

SOURCE: Demand Brands, Inc.



View source version on accesswire.com:
https://www.accesswire.com/650813/Demand-Brands-DMAN-Lucky-Chief-Acquires-Show-Me-State-Cannabis-Farm

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