Many stocks posted significant gains on Thursday and one of them was Demand Brands Inc (OTCMKTS:DMAN) stock which ended with gains of up to 67% for the day.
On Thursday, DMAN stock soared 67.11% to $0.0127 with over 23.57 million shares, compared to its average volume of 2.23 million shares. The stock moved in a range from $0.0076 to $0.0160 after opening trading at $0.0086.
The stock appeared on investors’ radars yesterday after the vertically integrated cannabis company released a letter from its chief executive addressed to shareholders. It may be wise for investors to consider taking a look at some of the highlights of the letter to make sense of the rally seen yesterday.
It was noted that Demand Brands achieved a significant milestone in the first fiscal quarter after completing the acquisition of vertically integrated cannabis entity CF3 SPV1 LLC. The CEO mentioned that the acquisition will help the company create more value for its shareholders. It should be noted that this was a reverse merger that was done between the two companies.
The move should help Demand Brands gain better access to capital markets and easily complete whole stock acquisitions. It remains to be seen if the stock can add to its gains today.
DMAN stock is trading below the 50-day and 200-day moving averages of $0.0128 and $0.0158 respectively. However, the stock is trading above the 20-day moving average of $0.0108.