Demand Brands (OTCMKTS: DMAN) has been ripping up the charts after its announcement on May 18th, 2021 of the acquisition of the assets that comprise the Lucky Chief brand. What is so interesting is the whole sector has been rising as stocks like Tilray (NASDAQ: TLRY), Aurora Canabis Inc (NYSE: ACB), Cronos Group, (NASDAQ: CRON), and Canopy Growth (NASDAQ: CGC) continue their climb higher on the increased chance of legalization.
This dip coincidently corresponded with DMAN’s announcement. This was the first announcement investors have seen in years which led to a stock-buying spree.
Supplying the Lucky Chief Brand is a vertically integrated cannabis seed-to-sale operation that has been in business since 2016. They were one of the first licensed producers of concentrate in California. They also have a cannabis license for their Type 7 lab for manufacturing, THC remediation, along with a full-service dispensary, and retail distribution facility.
Extraction is used to make their concentrate, and since the processing requires the use of volatile solvents, the State Department of Health mandates this level of certification. The most interesting part of this play is the name behind it all and that is what should continue to propel the price and the story unfolds.
Virde Fund 1 owns the Lucky Chief brand and a number of hemp/cannabis assets. It is a cannabis and hemp investment fund that primarily invests in hemp/cannabis assets and real estate. The fund was started in 2016 and appears to have raised $1.95 million and invested $965,000 to date. Some of their projects include Secyre Mobile App, CBD Switch Wellness, and Pharmers Hemp. They have offices in Marin and Sacramento, California and are looking for innovators and disruptors in the Cannabis and Marijuana space.