- Following the Acquisition’s Close, Red White & Bloom’s Financials Will Be Consolidated Under the Umbrella of the Public Company
Red White & Bloom (CSE: RWB) (OTCQX: RWBYF) announced Monday that it officially provided notice of its intent to exercise the company’s option to acquire 100% of Michigan-based PharmaCo.
Since late 2018, Red White & Bloom, through its wholly-owned subsidiary MichiCann Medical, has provided financing to PharmaCo. As part of the financing, RWB obtained the right to acquire PharmaCo.
After providing notice of its intent to exercise the option, RWB submitted its change of ownership application with the Michigan Regulatory Agency (MRA) for the purpose of taking over ownership of PharmaCo.
“PharmaCo has established significant market share within the state of Michigan. Now that we have completed our go public transaction, we felt that the time was right for us to take the next step of rolling our critical mass asset base together in what we believe is one of the top 3 most important cannabis states by market size and potential,” commented Brad Rogers, Chairman and CEO of Red White & Bloom.
“This will simplify and streamline the structure of the company, more easily evidencing the overall underlying value of RWB for our shareholders and stakeholders. PharmaCo has worked very hard on building out these assets for the last 2+ years, and we believe it is time for us to enter this large and important market, taking advantage of PharmaCo’s early mover advantage. Once closed, both retail and institutional investors should benefit from this now straightforward structure,” added Rogers.
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A recent report from Michigan State University on the potential size of the Michigan cannabis market stated, “It is estimated that the level of retail sales once it becomes widely available is approximately $3 billion with a total economic impact in excess of $7.8 billion.”
As per the terms of the deal, the all-share remuneration under the call option allows Red White & Bloom to acquire PharmaCo in exchange for 37 million units of the company.
For more details on the terms and conditions of the PharmaCo acquisition, please read RWB’s official press release here.
RWB Stock Price Action & Chart
Shares of Red White & Bloom’s CSE listed RWB stock closed Monday’s trading session at $1.00 per share, even on the day. RWB’s U.S. OTC Markets listed RWBYF stock closed the day at $0.745, down 0.72%.
Source: Barchart
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Red White & Bloom is a paid client of The Cannabis Investor. The Cannabis Investor holds a position in RWB.
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