Demand Brands Receives $390 Million Valuation From Stanton Park Advisors, Llc

WATSONVILLE, CA / ACCESSWIRE / May 12, 2022 / Pacific Technologies Group, Inc. AKA Demand Brands, Inc. (OTC PINK:DMAN), ("Company" or "DB") http://dman.co, a leading vertically integrated cannabis company, is pleased to announce the receipt of CF3 SPV I, LLC's ("CF3") Fair Market Valuation ("Valuation Report") from Stanton Park Advisors, LLC ("Stanton"). The Valuation Report indicates that the fair market value of CF3 as of February 12, 2022, is $390,808,000 (rounded) on a 100% equity value basis.

Delivery of the Valuation Report was a closing condition of CF3's acquisition by Demand Brands. With the delivery of this Valuation Report, CF3 has satisfied all conditions to close the acquisition of CF3 by DB.

In Stanton's valuation of the Company, Stanton used the income approach. Stanton analyzed the Company's projected cash flows and benchmarked the terminal cash flow against Comparable Public Companies to create a discounted cash flow analysis. In developing the discount rate, Stanton relied on the Capital Asset Pricing Model (CAPM) to develop the cost of equity using the 2016 Valuation Handbook from Duff & Phelps.

The Valuation Report was prepared by Jon Taylor, Managing Partner of Stanton. Mr. Taylor has approximately 18 years of business valuation, merger & acquisition advisory, and capital raising experience. He has completed more than 1,000 business valuation assignments in his career with companies in virtually every industry from divorce, litigation, expert testimony, estate planning, and gift tax, to 409a compliance, partnership buyouts, intangible asset appraisal, purchase price allocation, bankruptcy, and income determination purposes. Jon founded Stanton Park in 2012 to provide financial advisory services to small and medium-sized businesses nationwide. Prior to Stanton Park, he was a Vice President with Moss Adams Capital and Capstone Partners. Mr. Taylor has a BS in Economics with a concentration in finance and real estate from the Wharton School at the University of Pennsylvania and an MBA from the McDonough School of Business at Georgetown University. He is a Certified Valuation Analyst (CVA) with the National Association of Certified Valuators and Analysts (NACVA).

About Demand Brands

Demand Brands is a publicly-traded company that has vertical integration, optimization, and innovation at the heart of its core strategy. We strategically invest in, acquire & partner with synergistic cannabis companies to optimize and expand our vertically integrated platform with the goal of becoming a multi-state operation that captures value at every stage of the soil to sale process. Our capabilities include cultivation, processing, brand & supply management, and real estate.

PRESS CONTACT:
ir@dman.co
+1 (415) 685-0317

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Cautionary Note Regarding Forward-Looking Information and Statements. This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes", "belief", "expects", "intends", "anticipates", "projects" "will", or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company's reports and registration statements filed with the Securities and Exchange Commission.

SOURCE: Demand Brands, Inc.