One of North America’s fastest-growing cannabis brands continues its vertical momentum with its first corporate acquisition since going public. And it’s the kind of eye-popping buy that cannabis sector investors should pay close attention to.
Multi-state cannabis operator,
Red White & Bloom Brands Inc. (RWB) (
CSE.RWB,
OTC:TDRYD,
Forum), recently announced that it has signed a binding letter of intent (LOI) to acquire California-based cannabis conglomerate Platinum Premium Cannabis Products for up to USD$60 million when all milestones are hit. The deal is expected to close during the current quarter.
The acquisition of Platinum Vape is RWB’s first since its IPO in June, and also marks the Company’s initial foray into the massive California and Oklahoma market, furthering its strategic and aggressive expansion plans.
Platinum Vape are suppliers of a complete product line of premium cannabis products marketed and sold at over 700 retailers throughout Michigan, California, and Oklahoma. Platinum Vape currently boasts an 84% customer satisfaction rating (4.2/5) on WeedMaps.com.
RWB chair and CEO Brad Rogers commented on the landmark deal:
“George and Cody, the founders and operators of Platinum Vape, are visionaries in the cannabis market and have done an incredible job in building the pre-eminent vape company in the United States through a commitment to quality, education, and the communities they serve. One of the things that struck me is the balance they have achieved in running a profitable successful business, which will add tremendously to RWB's top and bottom lines while maintaining their commitment to supporting social issues, both financially and through awareness with the REACT program they established.”
He went on to say how proud Red White & Bloom Brands is of the milestone achievement:
"We are thrilled to have a foundation in which we can share our long-term vision for RWB with a wider pool of retail and institutional shareholders throughout the United States."
A profitably run enterprise, Platinum Vape is a premium cannabis brand with a current annualized revenue run rate in excess of USD$70,000,000 with an EBITDA of between 25% to 30% without forward synergies of an additional estimated 7% to 10%.
Investors Corner
And investors have taken note….and then some. Shareholder value continues to soar as stock prices have gained nearly 40% since early July, and RWB’s fully filleted market cap now nears a robust $350 million.
(Click image to link to chart)
About Red White & Bloom Brands
RWB’s US footprint currently spans Michigan, Illinois, and Massachusetts. With massive combined cultivation of over four million square feet, 600-plus employees, and 22 individual facilities, RWB’s mandate is to operate at scale in select states that provide the greatest return for their partners and shareholders.
The Bottom Line
As consumer demand for quality cannabis products continues to explode, established, market-driven companies like Platinum Vape are ready to meet that increasing demand. Red White & Bloom Brands clearly seized on a unique opportunity to address that demand through its strategic acquisition of Platinum at a price-point they see as a bargain given its strong revenue numbers and company's current operating profitability.
RWB is now a major market mover in the cannabis space with plenty of ‘bloom’ left on the rose.
For more information, visit RWB’s website at
https://www.redwhitebloom.com/
FULL DISCLOSURE: This is a paid article of Stockhouse Publishing.