The All-Stock Transaction Is One of the Largest Acquisitions in U.S. Cannabis History

SANTA MONICA, CA / ACCESSWIRE / March 7, 2022 / Demand Brands, Inc. (OTC PINK:DMAN), ("Company" or "DMAN") https://dman.co/, a business that sources, invests into and acquires Cannabis related companies that fit into its vertical integration strategy, including strategic partnerships with HIGH TIMES, True Leaf and other industry household names, announced today that the Company has completed the acquisition of CF3 SPV I, LLC, ("CF3"), in an all-stock transaction. CF3's unit holders will receive convertible Series E Preferred shares. that will be valued between USD 250 to 550 million, subject to an audit and valuation being prepared by Stanton Park Advisors LLC. CF3 currently generates more than USD 28 million in annual revenue at its current run rate.

The acquisition provides DMAN with multiple cannabis businesses consisting of cultivation and processing, brand management operations, and wholesale and retail distribution, with the capability to forge a footprint across North America to leverage anticipated federal deregulation

"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."

The Company's Board of Director appointments and key management posts will be announced in the coming days.

Cultivation and Processing

The acquisition provides the Company with a portfolio of 11 managed licenses in California with access to 236,000 SF of cultivation space and 41,500 lbs. of cannabis cultivation and processing. CF3 has established cultivation facilities on the Central Coast of California and distribution contracts throughout the state. The acquisition provides a footprint for the Company to expand to 111,000 lbs. of cannabis cultivation and processing by 2026.

Management Consulting and Brand Management

CF3 offers well-known lifestyle brands strategic advice and consulting services to enter the cannabis sector to leverage their brand equity to capture additional revenue. The Company plans to build a footprint across the continent by offering consulting services to small and medium cannabis enterprises. "In todays fragmented market supply chain, disruption and quality maintenance are the most dauting challenges," said Andrew Colehower. "Therefore, our consulting services focus on optimizing supply chain and operations to institutionalize our client's businesses. Our SOPs and technologies enable our clients to improve efficiencies, reduce G&A cost, enhance crop yield control quality standards and increase margins by offering a higher quality product."

Microbial Ag-Tech and Genetics

The acquisition has provided the Company with licensing, manufacturing, and distribution rights to patented microbial ag-tech solutions and rights to an exclusive genetics library. The microbial technologies have enabled specialty growers to enhance greater crop yields by 30% and THC levels up to 35%. The exclusive genetics library paired with microbial technologies, allow the Company to produce AA and AAA grade cannabis.

Wholesale and Retail Distribution

CF3 is in the process of transitioning to a Farm-Direct model to distribute 35,000 lbs. of product this year and next through the Company's trading desk.

Demand Brands, Inc. (OTCPK:DMAN), ("Company" or "DMAN"), and its wholly owned subsidiary Pacific Technology Group, are a vertically integrated cannabis business consisting of cultivation, processing, wholesale and retail distribution, and brand management operations. Over the course of 25 years, the Company has refined and perfected seed to sale processes with innovative solutions ranging from cutting-edge patented AgTech technologies to robust business models that optimize the cannabis supply chain capturing value at every stage of the supply chain.

The Company partners with regional businesses to institutionalize and consolidate them into a platform to leverage economies of scale and to capture market share growing superior AA and AAA grade cannabis products. Our proprietary technologies and SOPs give us a competitive advantage in a saturated market. We leverage the brand equity of consumer brands that want to enter the cannabis and hemp markets. Our focus is to build a footprint across the country to consolidate operators under one umbrella in anticipation of federal deregulation.

We have strategic alliances with some of the most well known names in the business, including HIGH TIMES, Revelry, True Leaf, GroupoFlor, CanEX and other household names in the business.

For more information please go to: https://dman.co

Cautionary Note Regarding Forward-Looking Information and Statements. 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.

Demand Brands, Inc.

PRESS CONTACT
we@dman.co
323-967-7900

SOURCE: Demand Brands, Inc.