Demand Brands Inc. (DMAN)

[JonnyBGood]

Okay guys, here's another idea.

Right now we have around 4.5 Billion issued.

If the stock price can get to a pps of $0.05 then the company valuation would be $225 million. Those Series C Preferred stock, according to the exact wording in the 10-Q have "a maximum conversion value of $4,000,000." $4 million would be 1.78% of $225 million. That would be a common share count equivalent of 80 million common shares at $0.05. Hardly worth doing a reverse split to compensate for. Most of us own in the 10's of millions.

If the stock price can only get to a pps of $0.01 then the company valuation would be $45 million. In that case, $4 million would be 9% of $45 million. That would be a common share count equivalent of 400 million common shares at $0.01. Still not really worth doing a reverse split to compensate for. Maybe 2:1 or 3:1. 5:1 would bring the pps up to $.05 which is where Tom said it should be valued at. I don't see a reverse split at that level to be anything negative. And then those 400 million become 80 million and the total share structure goes from 4.5 billion to around 900 million. Much more attractive to long term investors if the company is still progressing with it's business plan.

So as long as the share price is up around .01 or better, the conversion of those Series C preferred shares shouldn't matter that much and a reverse split would not really hurt the company but would in actuallity make it a little more attractive at $0.05 per share to larger investors.