Red White & Bloom Brands Inc. (CSE: RWB and OTCQX: RWBYF) (“RWB” or the “Company”) advises that it will be holding a special meeting on May 20, 2021, for the holders of common shares and Series 2 convertible preferred shares and a class meeting of the holders of the Series 2 convertible preferred shares (the “Special Meeting”). All common shareholders and Series 2 convertible preferred shareholders as of April 15, 2021, will be entitled to vote at the Special Meeting.
At the Special Meeting, common and Series 2 convertible preferred shareholders will be asked to approve a special resolution authorizing the Company to alter the articles of the Company that will in effect change the conversion date of the Series 2 convertible preferred shares such that each Series 2 shareholder shall be entitled to convert any whole number of Series 2 convertible preferred shares into validly issued, fully paid and non-assessable common shares on any business day after the eighteenth month anniversary, being October 24th, 2021, of the date upon which the Series 2 convertible preferred shares were issued by the Company (the “Alternation”).
In order for the resolution to pass, the Company will require approval from two-thirds (2/3) of the votes cast by the common shareholders and the Series 2 shareholders present in person or represented by proxy at the Special Meeting.
After careful consideration from the advice of its professional advisors, the board of directors believes that the holders of common shares and the holders of the Series 2 convertible preferred shares and the Company as a whole will benefit from the Alteration as it will allow the Company more time to build investor awareness in the Company, which in turn should allow for a more orderly market for the common shares when the Series 2 convertible preferred shares are convertible.
