Red White & Bloom Brands Inc. has made its final cash payment of US$13 million to the sellers in relation to its purchase last year of Platinum Vape (PV). Full details of the PV acquisition can be found in the September 14, 2020 press release. PV continues to see growth in sales of PV branded products. In the first full week of 2021, PV branded products had a record US$2.8 million in sales. The Company continues to work towards its launch of PV in Arizona and is looking at other states for potential expansion.
Brad Rogers, CEO of RWB, stated, “I’m very proud of our team at PV who continue to exponentially outperform the market and add accretive value to RWB,” adding, “I am happy to have this milestone completed and pleased to see the excitement the entire RWB team brings in to work every day and their drive to replicate this growth across the organization.”
In addition, the Company reports today that it has issued a US$11,550,000 principal amount debenture (the “Debenture”) to an arm’s-length investor by way of a private placement (the “Private Placement”) netting the company approximately $11 million after fees and expenses. The Debenture is not convertible, unsecured and bears interest at the rate of 1% per month. The principal amount of the Debenture and accrued interest is payable on the date that is the earlier of: (i) the date of completion by the Company of a minimum financing of US$20,000,000 and (ii) 120 days from the date of issuance of the Debenture, all as more particularly as set forth in the debenture certificate (the “Maturity Date”). The Company continues to work on its previously announced US$60m financing, see the December 17, 2020 press release, additional details shall be provided on progress in due course.
The Company intends to use the proceeds from the Private Placement for working capital purposes, including making the final payment under the PV acquisition agreement. All securities issued in connection with the Private Placement will be subject to a four-month hold period under securities laws.
The Company is positioning itself to be one of the top three multi-state cannabis operators active in the U.S. legal cannabis and hemp sector. RWB is predominantly focusing its investments on the major US markets, including Michigan, Illinois, Massachusetts, Arizona and California with respect to cannabis, and the US and internationally for hemp-based CBD products.