LB asked, "Also, what does the following "will give Demand access to new capital markets and currency to target acquisitions" mean?"
The key here is capital markets. Publicly traded companies have a much easier time raising money for acquisitions or expansion, purchase equipment, or invest in future growth, by selling shares. That's dilution. And it's a dirty word in most circles. However, done conservatively, dilution can enhance the bottom line by growing the top line. That means REVENUE!
They specifically stated "to target acquisitions." This tells us that they intend to buy more comapanies that have growth potential and fit with the overall business philosophy. They also said, "non core assets will be sold upon closing" in the announcement. This will tell us in what material ways INMG's "core" has changed by this acquisition.
There's been a lot of talk about this being a reverse merger. And therefore there will be a reverse split. Think this one through. Reverse splits happen when the share count is out of control or you need to manipulate the share price in order to uplist. INMG's share structure is strong. And $0.01/share is very close to the current share price. A couple of strong quarters will have INMG trading for much more than a penny. Bottom line, there's no need to reverse split in order to uplist or get the share structure under control.
Reverse Merger? In order for this to happen, the private company has to take control of the public company. Demand Brands is putting two of their own on the INMG Board, but there is no indication that they are taking the reins. Tom Coleman is still the CEO and retains voting control. No Reverse Merger.
INMG is acquiring Demand Brands. Why would Demand do this, some have asked? Demand Brands benefits by becoming a public company, virtually overnight, giving them access to more capital than they have currently. Capital that can be used for growth and expansion of their existing brands/franchises. Capital that can be used for additional acquisitions to enhance current operations or exapand into other markets.
INMG benefits by bringing more REVENUE! and growth potential to their bottom line and bringing in a sales/marketing team that has the expertise to grow INMG's current businesses. None of this guarantees success, but it does make success more likely. Tom has shown himself to be fiscally prudent, there's nothing here that says this will change.
If you were stoked about CannaNetTv going live, you should be absolutely giddy about INMG acquiring Demand Brands and bringing marketing winners and additional REVENUE! streams into the fold.
This is my opinion. Every investor should look at the facts and come to their own conclusions.
