SACRAMENTO, CA / ACCESSWIRE / October 13, 2021 / Demand Brands, Inc. (OTC PINK:DMAN), ('Company' or 'DMAN'), which markets products via its Lucky Chief brand http://www.luckychief.com announced today that it has entered into a Common Stock Purchase Agreement (the 'CSPA') with an Institutional Investment Fund ('Fund ') for a $5 million equity investment into the Company.
The CSPA with the Fund, which is one of the largest student and alumni venture funds in the US, requires DMAN to audit its Financial Statements, become a fully reporting SEC company and up list. The Company has also granted the Fund an opportunity to purchase an additional $5 million of the Company stock via warrant agreements. The Company is in the process of engaging an auditor and expects to make an application to up list prior to the end of the year. The Fund is primarily focused on investments that will have a lasting positive impact on the Millennial generation and maintains a diverse portfolio of investments in both private and public companies.
Alan Ochoa, Senior Analyst of the Fund, commented, 'After speaking with management, running due diligence on Mr. Dixon's business model, and visiting their corporate office in Sacramento, we feel confident that Demand Brands Inc. and Lucky Chief are merely at the ground level with vast potential for growth over the next couple of years. It's not often when you see a vertically integrated cannabis company with all the verticals including genetics ready to scale in two states. This is one of the most exciting investments for our Fund this year and we are happy to be one of the company's financial and strategic partners.'
Ian Dixon, Chairman & CEO of Demand Brands Inc. added, 'Having a strong Institutional Investment Fund on board and a new, valuable source of capital is not only a validation of the Lucky Chief and DMAN vision, but will accelerate and drive growth and development of our vertically integrated cannabis business model and expand our genetic and retail footprint throughout California and Oklahoma. We look forward to showing that the Fund's confidence in us is well deserved.'
About the Institutional Investment Fund
The Institutional Investment Fund focuses on investments that will have a lasting positive impact on the Millennial generation with a portfolio of both private and public companies. The aim of their Fund is to create a learning platform supported by alumni that will provide real-world experience and help bridge the gap between a STEM dominated university and Wall Street, helping students jumpstart their careers in finance, while providing strategic capitalization, business development support, and engineered exits to organizations with a viable future in the modern economy.
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 is also building out an in-house cannabis dispensary named the 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.
SOURCE: Demand Brands, Inc.
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