loader image

Red White & Bloom Closes Blockbuster Michigan PharmaCo Acquisition

Reading Time: 4 minutes



With the Highly-Anticipated PharmaCo Acquisition Now a Done Deal, the State of Michigan Has Officially Transferred 21 Medical and Adult-Use Cannabis Licenses to RWB
U.S. multi-state operator (MSO) Red White & Bloom (CSE: RWB) (OTCQX: RWBYF) announced it has closed its highly-anticipated PharmaCo acquisition after receiving all the necessary regulatory approvals from the state of Michigan. The all-stock deal originally announced on July 27, 2020, was completed via the company’s wholly-owned subsidiary RWB Michigan, LLC.
Red White & Bloom is now officially a fully licensed and integrated seed-to-sale medical and adult-use cannabis player in Michigan, a top U.S. cannabis market, which boasted 2021 total sales of USD $1.79 billion. The company also announced it has expanded its Michigan operation to 180 employees.
Speaking on the company’s milestone acquisition, Red White & Bloom Chairman & CEO Brad Rogers stated:
“I’m pleased to announce that we have closed on the PharmaCo acquisition and now control all aspects of our Michigan operations. This is a major milestone for RWB and its shareholders as we continue to execute key components of our growth strategy and build our house of brands across our core markets, as promised. We are now in the driver’s seat on over 20 assets across Michigan – one of the largest and fastest-growing cannabis markets in the country.”
In total, the PharmaCo deal saw RWB acquire the following:
Eight fully operating dispensaries (five dually licensed);
Two operational indoor cultivation facilities totalling over 30,000 sq. ft.;
One municipally licensed 10-acre outdoor cultivation facility operationally ready for 2022 season;
Two ready-to-open dispensaries; and
22 owned properties for potential additional cultivation and dispensary locations.
Source: Shutterstock
 READ MORE: Red White & Bloom Receives Full Licensing, Commences Operation of 15,000 Sq. Ft. Michigan Cannabis Manufacturing/Processing Facility
Following up on his remarks, Rogers continued:
“RWB’s strategy is to optimally leverage regulatory frameworks in our core markets for success, financially and operationally. Through our previous partnerships, we were able to propel our Platinum Vape® brand cartridges to the #1 most popular brand in Michigan and establish a solid distribution channel for additional branded products. As we take full control of our Michigan operations from seed to sale, our anticipated 2022 initiatives include extending our branded product lines, updating our dispensaries to heighten the customer experience, creating supply chain efficiencies and growing revenue and profitability.”
The PharmaCo acquisition expands Red White & Bloom’s footprint in Michigan beyond its Warren manufacturing facility and industry-leading Platinum Vape brand.
RWB now owns and operates the following Michigan assets:
Dispensaries:
Cannabis Cultivation:
Two indoor cultivation facilities – Glendale and Marquette
A 10-acre outdoor cultivation site – Au Gres
Additional Assets:
Multiple assets for expansion of RWB’s dispensary and cultivation footprint.
Please click here to access the location information for all of Red White & Bloom’s newly acquired assets.
“We welcome the many talented PharmaCo employees to the RWB team to continue their good work. We value their contributions and feel it is important to pay competitive wages and provide key leaders and employees with a stake in the company, so they share in the rewards of helping RWB achieve its goals,” added Rogers.
Acquisition Details
Consideration for the transaction includes the issuance of 37 million units of RWB. Each unit consists of one common share and one series 2 convertible preferred share in RWB. Each Series 2 Preferred Share shall be convertible, per the formula as set out in the terms in RWB’s articles, at any time or times before April 24, 2022. The Series 2 Preferred shares are subject to a voluntary lock-up until January 1, 2023. The Units were issued at a deemed price of CDN$0.90 per unit.
In addition, RWB has converted $30 million of previously advanced loans to PharmaCo into preferred shares in PharmaCo issued to RWB Michigan immediately before closing. Upon issuance, RWB Michigan will hold 100% of the ownership of PharmaCo.
PharmaCo Debt Holders Settlement
RWB has entered into agreements with certain creditors of PharmaCo for the settlement of an aggregate of CDN$4,048,000 of indebtedness through the issuance of 4,024,000 Units. The Series 2 Preferred Shares are subject to a voluntary lock-up until January 1, 2023. All shares issued in connection with the debt settlement will be subject to a hold period of four months and one day for Canadian holders and subject to applicable restrictions under Rule 144 for U.S. holders. The debt settlement is expected to close in the coming days.
RWB Grants Options & Performance-Based Restricted Stock
Certain officers, directors, employees and advisors have been issued an aggregate of 500,000 stock options at $0.50 per share and 1,250,000 performance-based restricted stock units with various vesting periods.

Learn more about Red White & Bloom: Website | Investor Deck | RWB Chart

With U.S. Pot Stocks the Hot Theme of 2021, Here’s Why Red White & Bloom Could Be One of the Cannabis Sector’s Top Performers
Read Full Article

Follow TCI on Social Media: Facebook | Instagram | Twitter | LinkedIn | Investor Group
Follow Psychedelic Profits on Social Media: Facebook | Twitter | LinkedIn | Investor Group
Did you enjoy this article? If so, sign up for our Email Newsletter below to start receiving our weekly recap of the week’s best articles.

 Get Your Copy of The Ultimate Cannabis Investing Guide
 Join the Discussion in the TCI Investor Group
Red White & Bloom is a paid client of The Cannabis Investor. The Cannabis Investor holds a position in RWB.
This report/release/profile is a commercial advertisement and is for general information purposes only. We are engaged in the business of marketing and advertising companies for monetary compensation unless otherwise stated below.
View Full Disclaimer Here

Read More:
Featured ArticlesCannabis Stock NewsCannabis Industry ArticlesTechnical Analysis ArticlesWatch Cannabis Stock Videos

The Cannabis Investor is a leading media outlet for Cannabis investment opportunities and breaking industry news. TCI is focused on uncovering paradigm-shifting marijuana stocks and reporting on the evolving cannabis value chain.
Join Our Text Message List: Text ‘POTSTOCKS’ to 1-833-681-1622



Source link

share this article
  • This field is for validation purposes and should be left unchanged.

Subscribe to receive the latest business and industry news in your inbox.

  • This field is for validation purposes and should be left unchanged.

latest from the industry
PSYCHEDELICS news

Whitepaper

  • This field is for validation purposes and should be left unchanged.

  • This field is for validation purposes and should be left unchanged.

Use