After months and months of waiting, it’s finally happened. Red White & Bloom (CSE: RWB) this morning announced that it has received pre-qualification in the state of Michigan for marijuana licensing.
The pre-qualification will enable the company to proceed to the second step of the process, which will see the firm work towards approval for its previously announced asset acquisition. The authorization effectively allows the company to move forward with its operational strategy within Michigan, and complete the process of licensing for its intended facilities.
The second step of the process will include a review of the operating and layout plans as well as the facility, inventory processes, marketing strategy, and physical inspections. Notably, the assets have already previously undergone this process and as a result a smooth migration is expected. The second step is the final step of the licensing process within the state.
Commenting on the news, CEO Brad Rogers stated, “We are well on our way to meeting this second step upon completion and approval of our revised asset acquisition agreement of the 18 retail locations currently held by our investee as well as certain cultivation and processing facilities currently represented by roughly 45 overall licences.“
Pre-qualification is the most significant regulatory hurdle within the state, with Michigan having one of the highest barriers to entry among all states where cannabis is currently legal. Despite this, the state of ten million currently has monthly sales of cannabis in excess of US$145 million.
Red White & Bloom last traded at $1.15 on the CSE.