Replies to post #82355 on 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)...

[IAmTopG]

It is stated in PR that restricted preferred share transaction is used for acquisition of DB.

As you see in the PR and DB website, it is clearly stated that their goal is purchasing companies that fit their culture/ background or whatever you wanna call it. To that extent, I am sensing that INMG is changing direction - its not only a platform company but it is acting as a company that buys out as well as working with other companies by providing capital.

To that end, INMG gives DB a vehicle to achieve that goal. Its a mutually beneficial relationship. INMG gives DB previous owners some share percentage and possibly some voting power to along with TOM as original owner. As Amac indicated, TOM owns 93 mill and he is old, this is his last ticket and I think he is wise enough not to give away the company just like that thru reverse merger or whatever you wanna call it.

Once the companies started generating revenue on paper (they already do as they are 3-4 or may be 5 years old companies), they can acquiry company by revenue. If additional capital is needed, they can dilute - which is ok as long as we are generating revenue and for growth.

Just an FYI, DB was incorporated for this purpose. Therefore the incorporation date is recent

This is just my opinion and I think it makes sense. Still waiting for additional info and will share them as they or if they come out.

[BootsandCoots]

DILUTION DILUTION DILUTION COMES TO MY MIND

INMG WILL DIG THEMSELVES IN A HOLE FOR YEARS TO COME PERIOD