Red White & Bloom Reported it Secured Pre-Qualification in Michigan and is Set to Move Forward With its Full Operational Strategy in the Great Lakes State
Today’s News Lit a Fire Under the Company’s Stock as Shares Soared Almost 20% and the Multi-Day Bullish Price Action Appears to Have Placed RWB’s Stock on the Doorstep of a Potentially Massive Technical Breakout
Red White & Bloom (CSE: RWB) (OTCQX: RWBYF) released major news today, with the company announcing it has completed the more comprehensive portion of the Michigan two-step application process for cannabis licensing via its wholly-owned operating subsidiary, RWB Michigan, LLC.
The Marijuana Regulatory Agency (MRA) pre-qualification represents the authorization of the company to move forward with its full operational strategy in the Great Lakes State and complete the licensing process for its intended facilities. As part of the first step, pre-qualification, all application materials, background checks, and payment of the application fees are now complete.
Commenting on today’s momentous announcement, RWB Chairman & CEO Brad Rogers stated:
“Michigan has been one of the highest bars of entry to any market we’ve entered. The regulatory body has done it right, and all stakeholders should feel comfort with the level of scrutiny and governance we have to be compliant with as operators. This now provides a path for us to fully execute on our strategy of being the house of brands and being great channel partners to all of our distribution points as well as our own planned flagship retail locations. Entering Michigan provides RWB access to a market with a population of approximately 10 million people and one where recent state monthly sales are over USD $145 million. Given the number of documents and rigorous background check process, pre-qualification is the most significant regulatory hurdle in the Michigan marijuana licensing process.”
The second and final step in Michigan’s cannabis licensing process includes a review of the proposed establishment’s operating and layout plans, including but not limited to facility review, technology and inventory process, and marketing strategy. Also included in the final step process is a physical inspection and, once approved payment of the license fee.
“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. Having started our journey through investments in Michigan, upon completion of the step two process, we can finally deliver to our shareholders the financial results commensurate with our patience and our judicious investments in the great state of Michigan. We look forward to bringing exceptional quality, price and experience through our house of brands and product lines that are second to none to loyal consumers in Michigan, as we work closely with regulators in Michigan to set new standards as the market continues to evolve,” added Rogers.
Shares of Red White & Bloom’s CSE-listed RWB stock soared in response to today’s news, rising +19.13% to close the day at $1.37 per share. South of the border, the company’s U.S. listed RWBYF shares skyrocketed +19.69%, closing today’s trading session at $1.13.
After reaching an all-time high of $2 in early February, RWB’s stock consolidated nicely, forming a beautiful bull flag chart formation. In fact, RWB’s chart is a textbook example of a bullish flag pattern.
Over the past few days, RWB’s stock has displayed extremely bullish price action, with the share price now sitting at the apex of the bull flag pattern. Combine that with today’s 20% upside move and strong HOD close, it appears Red White & Bloom could be on the verge of a massive technical breakout.
Take a moment to review the information and chart below before moving RWB to the top of your breakout watchlist.
“Bullish flag formations are found in stocks with strong uptrends and are considered good continuation patterns. They are called bull flags because the pattern resembles a flag on a pole. The pole is the result of a vertical rise in a stock, and the flag results from a period of consolidation. The flag can be a horizontal rectangle but is also often angled down away from the prevailing trend. Another variant is called a bullish pennant, in which the consolidation takes the form of a symmetrical triangle.” – Investopedia
“The shape of the flag is not as important as the underlying psychology behind the pattern. Basically, despite a strong vertical rally, the stock refuses to drop appreciably as bulls snap up any shares they can get. The breakout from a flag often results in a powerful move higher, measuring the length of the prior flag pole. Bull flags typically begin to surface in conjunction with a new market rally.” – Investopedia
With U.S. Pot Stocks the Hot Theme of 2021, Here’s Why Red White & Bloom Could Be One of the Cannabis Sector’s Top Performers
Red White & Bloom is a paid client of The Cannabis Investor. The Cannabis Investor holds a position in RWB.
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