Pacific Technologies Group, Inc. AKA Demand Brands, Inc. (OTCPK:DMAN) closed a contract farming agreement between TruLeaf, Inc and a cannabis farm serviced by DB's wholly-owned subsidiary, Viridi Farms. The company expects to generate a combined revenue of $8.5 million from the agreement, with 50% of the profits attributable to DB through Viridi.
Under the agreement, Viridi's client farm and TruLeaf shall be cultivating fresh frozen cannabis flower on a 54,000 SF site which will be used for live rosin extraction. DB expects the client farm to cultivate 50,000 lbs. of wet cannabis, which the company expects would yield an estimated 560,000 grams of rosin. Viridi expects its client farm to cultivate the product from June through September 2022. Extraction will commence thereafter and is expected to conclude in April 2023. Sales will begin thereafter through DB's wholesale and retail distribution network. The parties shall be sharing the operating costs and revenues equally under the agreement. Additionally, TruLeaf and Viridi shall co-invest in the infrastructure of the client's cultivation site.
DB and TruLeaf's synergistic relationship began in 2017 when Viridi started providing consulting services to TruLeaf, including cultivation, processing, and brand & supply management. The founders of Viridi and TruLeaf have been in business together for over 20 years, dating back to Prop 215 in California.
"This milestone allows DB and TruLeaf to build out a retail presence for live rosin, and further scale out live rosin production once sales channels and brands are established." stated Andrew Colehower, CEO of Demand Brands, "This partnership will produce and supply live rosin, using Viridi genetics, to industry-leading brands, resulting in superior operating margins."
Photo: Courtesy of Pacific Technologies Group, Inc. / Demand Brands, Inc.
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