Vivo did same thing with Medipharm !! They have to team up to survive or go bust !!! Could be worse you could own Fir and flower they filed for CCAA protection !!! Shareholders Finished !!!
Red White & Bloom and Aleafia Health Execute Binding Letter Agreement for Business Combination
-- The Combined Company (as defined below) is expected to represent C$138 million in trailing distribution and retail revenue from the Canadian, United States and European cannabis end-markets and combined Gross Profit before fair value adjustments of $39 million.(1)(2)(3)(4) -- On a combined basis, RWB and Aleafia are expected to service approximately 3,000 retail locations in North America. (1)(2)(3)(4) -- Expected annualized synergies of approximately C$10 million in COGS and SG&A through optimization and economies of scale, and elimination of debt service obligations. (1)(2)(3)(4)
TORONTO, June 07, 2023 (GLOBE NEWSWIRE) -- Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF) ("RWB" or the "Company") and
Aleafia Health Inc. (TSX: AH and OTCQB: ALEAF) ("Aleafia") are pleased to announce that the Company and Aleafia have entered into a binding letter agreement on June 6, 2023 (the "Letter Agreement") whereby the Company has agreed to acquire Aleafia and its subsidiaries in a business combination transaction (the "Proposed Transaction").
Under the terms of the Letter Agreement, each outstanding common share in the capital of Aleafia (each, an "Aleafia Share") will be exchanged for 0.35 of a common share in the capital of the Company (each, an "RWB Share"), subject to customary adjustment (the "Exchange Ratio"). Upon the completion of the Proposed Transaction, existing RWB shareholders are expected to own approximately 76% of the Combined Company resulting from the Proposed Transaction (the "Combined Company") and Aleafia shareholders are expected to own approximately 24% of the Combined Company.