Company to Refocus Operations in Oil & Gas and Mineral Sectors
Long Beach, CA, Sept. 10, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Demand Brands, Inc. (OTCPK:DMAN), (“Company” or “DMAN”), announced today that it has acquired a 100% interest in GEOEnhanced Technologies, Inc (“GEO”) in exchange for 100,000 shares of the Company’s Series A Preferred stock. In connection with this transaction, all previously issued and outstanding shares of Series A and Series C preferred stock, along with 200 shares of Series B preferred stock, were cancelled by the Company. The remaining shares of Series B preferred stock (163 shares) have been subjected to various lock up and leak out restrictions. This transaction is not expected to result in any immediate significant dilution to DMAN common shareholders. The share exchange with GEO resulted in a change in control of Demand Brands with the original shareholders of GEO becoming the controlling shareholders of Demand Brands. GEO has informed the Board of Directors that it intends to become the successor issuer to Demand Brands for reporting and accounting purposes and will eventually file to change the name and ticker symbol. Shannon Cravey was appointed to the Board of Directors of Demand Brands as Chairman and all other members of the Board together with the Company’s officers resigned as part of the transaction. Mr. Cravey appointed Craig Fischer to serve as Chief Executive Officer and to fill one of the vacated board seats. The remaining board seat was filled by Richard Barber, who was appointed Chief Financial Officer of the Company.
GEOEnhanced Technologies was founded in 2016 to develop and bring to market a 4D seismic imaging system for oil, gas, mineral and water exploration. The proprietary technology conducts subsurface analysis in order to locate, identify, and quantify liquid and gaseous hydrocarbons, water, and other minerals. The electro-seismic process can eliminate “dry hole” and other exploratory costs in both the energy industry and mineral exploration. Unlike other seismic imaging devices, GEO’s system works without drilling any holes and also gives a reading on porosity at depths up to 40,000 feet. In the case of subsurface liquids, the system is able to show not only the size, depth and composition of the material, but also the direction of flow. This information greatly reduces drilling and operating costs and increases well productivity.
GEO’s business is primarily a service model where they image property for third party exploration companies. Revenues are generated from a combination of flat fees charged per acre plus an override percentage on production that results from using the information provided. GEO also provides drilling consulting and management services. The Company is also acquiring existing oil, gas and mineral leases on which it will employ its technology and expertise to drill new wells and increase the production and value of those leases.
Bruce Hannan, outgoing CEO of Demand Brands, stated, “The opportunity to acquire GEO is something the Company could not pass up. This is an exciting business with excellent potential that combines both proven technology and one of the hottest industries out there today. This is not development-stage acquisition, but a company with existing assets that is just now entering its revenue cycle. Despite diligent efforts by management to roll out our cannabis consumables business, we found it challenging to compete in an over saturated, uncertain marketplace. The GEO deal adds immediate, substantive value to our shareholders with a huge upside and experience management.”
Craig Fischer, newly-appointed Chief Executive Officer, added, “GEO stands at the forefront of using technology to reduce energy and mineral exploration costs. With exploratory drilling and mining being one of the biggest cost factors involved in energy production, being able to significantly cut down on the risk of “dry holes” is a game changer for the industry. Our three-prong approach combining service revenues, ongoing royalties or overrides, and our own production agenda, positions GEO to be a significant player in not only the energy area, but also in valuable mineral mining. In the coming days we, as a management team, look forward to providing additional information about our company, our short-term plans for providing audited financial statements, up-listing our stock, and operational forecasts.”
About Geo Enhanced Technologies, Inc.
GEOEnhanced Technologies, Inc. is a South Dakota company headquartered in Gun Barrel City, Texas, and engaged in both oil and gas exploration as well as using a proprietary electro-seismic technology to facilitate subsurface mapping to depths of 40,000 vertical feet. The company is positioned as service provider to the energy and mineral exploration industries where it charges fees plus revenue overrides for employing its technology to create seismic mapping. In addition, GEO is actively acquiring oil and gas production leases which it intends to map using its technology, drill exploratory wells to confirm the mapping, then either resell or further develop and produce the properties. For additional information, see the Company’s website at www.geoenhanced.com.
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 which 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.