DENVER, Sept. 8, 2014 /PRNewswire/ -- DC Brands
International, Inc. (OTCQB: HRDN) ("DC Brands" or the "Company") is
very excited to announce that it has signed a binding letter of
intent to acquire Lotus MMJ Consulting, LLC, ("Lotus") a Colorado
LLC. The new combined entity will be branded Lotus
Consulting. Lotus is owned and managed by Erik Santus and Hung
Nguyen who are also founders, owners and managers of the
Lotus Medical, LLC who operate a MMJ dispensary in Downtown Denver. The consummation of the
merger is subject to certain closing conditions, including the
negotiation of a definitive agreement.
DC Brands has agreed to purchase Lotus for 1,000 shares of
Series E Convertible Preferred Stock and a twenty percent (20%)
non-dilutive Class A Membership Interest in DC Brands Green
Investors. Erik Santus will be
the new president and CEO of Lotus Consulting and Bob Armstrong will continue as CFO. Lotus
Medical has agreed to engage the services of Lotus Consulting to
provide Lotus Medical with accounting, payroll, cash flow
management, and financial reporting,
Lotus MMJ Consulting currently has 4 clients in four
different states. The projected gross revenue from the new,
combined entity is expected to be in excess of $1 million in 2015.
DC Brands has committed to provide a $200,000 revolving loan to Lotus Consulting for
working capital.
Bob Armstrong, DC Brands'
CEO and CFO stated, "We are very excited about this deal. I
believe that Partnering with executives who have started and grown
one of the premier Colorado MMJ dispensary operations and then
started their consulting business because people across the country
began reaching out to them, will be invaluable to the success of
this venture. Another benefit to the consulting operation is
the 'first look' at many new products and operations that may
provide future investment opportunities for DC and Lotus Consulting
Group."
DC Brands intends to immediately begin work on a new
corporate website that will provide our investors information on
our activities as well as all of our past filings, press releases
and communications. Please go to http://lotuscannabis.com/ to
see the Lotus Medical website and learn about the premier MMJ
dispensary in Colorado.
About DC Brands International, Inc.
DC Brands
International, a publicly traded company under the ticker symbol
(HRDN). On April 4, 2014, the Company
announced that it intended to become a service provider to fully
licensed Colorado medical and
recreational marijuana businesses.
Forward-Looking Statements
This press release
may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The Company intends for the
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements. Words such as
"anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates," or variations of such words are intended to identify
such forward-looking statements. The forward-looking statements are
based on current expectations, estimates and projections made by
management and include statements regarding the Company's
consummation of the merger, its projected revenue, the value of the
partnership and intended new website. All forward-looking
statements in this press release are made as of the date of this
press release, and the Company assumes no obligation to update
these forward-looking statements other than as required by law. The
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those set
forth or implied by any forward-looking statements, such as our
ability to successfully negotiate a definitive agreement for the
merger, close the merger transaction, our ability to fund and y
implement our new corporate plan, our ability to benefit from
the merger and the contribution of the Lotus executives and
the continued rapid growth of the local Colorado marijuana industry, that our
financial projections are materially different from actual results,
and the risk factors discussed in the Business and Management's
Discussion and Analysis sections in our Quarterly Reports on Form
10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K.
Copies of these filings are available
at www.sec.gov
SOURCE DC Brands International, Inc.