Red White & Bloom Brands Inc. (CSE: RWB) (OTC: RWBYF)(“RWB” or the “Company”) announces that it has arranged the required cash for closing of its previously announced acquisition of an Illinois Adult Use and Medical Cannabis Cultivation Center License and Associated Assets (the “Illinois Assets”).
Brad Rogers, Chairman & CEO of RWB commented, “Surpassing US $1 Billion of adult use sales in only its first year, Illinois has quickly developed into one of the most robust revenue markets in the United States1. With the financing now secured, we are thrilled to be one step closer to bringing Red White & Bloom’s nationally-recognized brands to this market. The renewed optimism around the State permitting an additional 75 retail locations further highlights the enormous opportunity Illinois offers.”
Bennett Johnson III, RWB’s Director of Government Affairs & Public Policy noted, “We are particularly enthused that Illinois has laid out the roadmap for the strongest social equity and diversity programs in the cannabis industry. Their vision aligns strongly with our core tenets of championing social justice initiatives and fostering robust partnerships with marginalized stakeholders. We have started the work in advance of closing to ensure that we can contribute to this mandate and play our part in a meaningful way.”
Upon closing, and subject to regulatory approval, the Company intends to introduce both its Platinum Vapeand High Times® branded products into the Illinois market. Platinum Vape branded products are one of the most sought after brands in the markets they serve, including Michigan, California and Oklahoma with plans to expand to Arizona under way. High Times® is one of the most recognized cannabis brands in the world, and the initial product launches in Michigan sold out in hours after their availability. The Company believes that these brands backed by the Company’s commitment to quality, safety and consistency will resonate with users in Illinois.
The Company has received a Warrant exercise for 8,000,000 common shares for gross proceeds of CDN $8 million from an institutional investor and combined with the irrevocable commitment for the purchase of a US$7 million debenture unit (the “Debenture Unit”), and cash on hand, the Company has arranged the required financing to close its purchase of the Illinois’ Assets later this quarter (subject to applicable regulatory approvals among other conditions).
The Debenture Unit to be issued by the Company consists of a USD $7,000,000 principal amount of debenture (the “Debenture”) and 1,000,000 common share purchase warrants (the “Warrants”). Each Warrant is exercisable into one common share of the Company at a price of CDN$1.85 (or such other price as may be acceptable to the Canadian Securities Exchange at the time of issuance) for a period of 2 years from the date of issuance. All securities issued in connection with the Private Placement will be subject to a four-month hold period under securities laws.