Demand Brands Inc. (DMAN)

[Amac1001]

Here’s a total guess on my part (speculation)...basically you’re asking what did Demand Brands get as compensation as part of the acquisition:
1). Preferred shares (stated in PR)...I will assume it converts to 90 million shares equal to Tom’s ownership (my guess)
2). They get to take DB public for “free”...this can otherwise be a costly and lengthy process if DB tried to do it itself
3). I am guessing that some of the non-core assets sold will be from INMG with a commitment that they be reinvested into the 6 DB businesses
4). Access to the LocalCannibisDispensary client list where they will make a pitch to start selling DB company products
5). Instant access to capital markets (see #2)
6). Access to Tom Coleman’s connections, experience and resources
7). They will be part owners now so if they see INMG as an underutilized set of assets (because we know Tom has his faults), they now have ownership in underperforming assets which they (as better operators) can rehabilitate and share the upside in.
8). Possible succession planning...I think Tom’s in his 70’s and he may step out of the way soon and leave them to run the whole company while he just stays on as a shareholder and board member (?)

Anyways that’s a scenario in answer to your question...they didn’t just “give away” the company...I view this in practice as behaving more like a mutually beneficial merger (though named acquisition because the non-public company needed to fold into the public company)...

Either way they stated that its non-dilutive in the short term (and the authorized share structure even shrunk 40 million shares after the announcement) so the shares we held prior to the acquisition have to be worth more than those pre-acquisition because of the value of those 6 entities (IMHO)...