Red White & Bloom Brands Inc. (CSE: RWB and OTCQX: RWBYF) (“RWB” or the “Company”), a multi-state cannabis operator and house of premium brands, today announced that certain Company shareholders, representing over 50 million RWB Series II Preferred Shares (the “Preferred Shares”) (together, the “Locked-up Shareholders”), have agreed to a non-conversion lock-up period for their Preferred Shares for a term that expires on April 24th, 2022; the date at which the Preferred Shares are slated for automatic conversion into common shares of the Company. The Agreement shall provide for the Locked-up Shareholders to maintain their current rights as Preferred Share shareholders, including the 5% accrued dividends that form part of the Preferred Share features, as well as a change of control clause that would accelerate the conversion date in the event that there is a change of control of the Company. All shareholders of the Series II Preferred Shares have the option to hold their shares until April 24th, 2022.
“RWB senior leadership, including myself, as well as a number of shareholders believe in RWB’s long-term house of premium brands strategy to lead the US cannabis industry,” said Brad Rogers, CEO and Chairman of RWB. “We are continuing to strengthen every aspect of the company. Those that have been following us recognize the significant transformation that we are undertaking with additions to our team, expansion of our brands, and the imminent operationalizing of key investments we have made over the last couple of years. This lock-up extension reflects confidence in the vision and long-term growth potential of the Company by its founders, management and shareholders. We are committed to building the business and driving long-term shareholder value.”
