WATSONVILLE, CA / ACCESSWIRE / May 18, 2022 / Pacific Technologies Group, Inc. AKA Demand Brands, Inc. (OTC PINK:DMAN), ('Company' or 'DB') http://dman.co, a leading vertically integrated cannabis company, is pleased to announce the closing of a contract farming agreement ('Agreement') between TruLeaf, Inc ('TruLeaf') and a cannabis farm serviced by DB's wholly-owned subsidiary, Viridi Farms, ('Viridi'). The Company expects to generate a combined revenue of $8.5 million from the Agreement, with 50% of the profits attributable to DB through Viridi.
Under the Agreement, Viridi's client farm and TruLeaf shall be cultivating fresh frozen cannabis flower on a 54,000 SF site which will be used for live rosin extraction. DB expects the client farm to cultivate 50,000 lbs. of wet cannabis, which the Company expects would yield an estimated 560,000 grams of rosin. Viridi expects its client farm to cultivate the product from June through September 2022. Extraction will commence thereafter and is expected to conclude in April 2023. Sales will begin thereafter through DB's wholesale and retail distribution network. The parties shall be sharing the operating costs and revenues equally under the Agreement. Additionally, TruLeaf and Viridi shall co-invest in the infrastructure of the client's cultivation site.
TruLeaf and Viridi Farms negotiating the final terms of the Agreement at the Client's farm in Corralitos, CA. May 13, 2022
DB and TruLeaf's synergistic relationship began in 2017 when Viridi started providing consulting services to TruLeaf, including cultivation, processing, and brand & supply management. The founders of Viridi and TruLeaf have been in business together for over 20 years, dating back to Prop 215 in California.
'This milestone allows DB and TruLeaf to build out a retail presence for live rosin, and further scale out live rosin production once sales channels and brands are established.' said Andrew Colehower, CEO of Demand Brands, 'This partnership will produce and supply live rosin, using Viridi genetics, to industry-leading brands, resulting in superior operating margins.'
'Truleaf and Viridi are one family with all the capabilities to enter the live rosin market. Now is a great time to build on our partnership and create a new stream of revenue. We believe live rosin captures the essence of the plant and preserves the vintage of the harvest,' said Ashur Peyour, COO of TruLeaf.
TruLeaf is a California licensed cultivator, manufacturer and distributor of cannabis and cannabis products. TruLeaf is headquartered in Modesto, California.
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About Demand Brands
Demand Brands is a publicly-traded company that has vertical integration, optimization, and innovation at the heart of its core strategy. We strategically invest in, acquire & partner with synergistic cannabis companies to optimize and expand our vertically integrated platform with the goal of becoming a multi-state operation that captures value at every stage of the soil to sale process. Our capabilities include cultivation, processing, brand & supply management, and real estate.
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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 that 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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