- Platinum Vape Boasts Current Annualized Revenues of Over USD $75 Million with EBITDA of Approximately 25% – 30%
- PV’s Ultra-Premium Cannabis Products Are Sold in More Than 700 Retail Locations Throughout Michigan, California and Oklahoma
- Platinum Vape’s Robust and Profitable Operations Will Be Synergistically Combined with Red White & Bloom’s, Likely Providing Future RWB Earnings with a Substantial Boost Moving Forward
Red White & Bloom (CSE: RWB) (OTCQX: RWBYF) announced Monday that effective September 14, 2020, the company has officially closed its blockbuster acquisition of Platinum Vape (PV). Monday’s news follows the company’s September 02, 2020, Q2 earnings report, in which it firmed up the PV deal.
Platinum Vape is an American success story founded by the father-son duo of George and Cody Sadler. Through financial discipline and strong management, Platinum has grown into a highly profitable U.S. cannabis operator, which now has its full line of ultra-premium cannabis products in over 700 retail locations throughout Michigan, California and Oklahoma. PV products also boast an impressive 84% approval rating on WeedMaps.
“We are happy to have all the details of this acquisition now wrapped up and have this transaction closed. I think it was important to get this transaction completed and have the great team at Platinum Vape join us as we look to further expand our footprint in the U.S.,” commented RWB Chairman & CEO Brad Rogers.
“Cody and I are so excited that we’re able to execute on all levels needed to get this done. To be successful in this space, you need a solid team, and that’s exactly what we feel we are part of with RWB. The future growth for Platinum, combined with a company that has solid growth, low debt and great direction, is what’s needed to navigate through this space, and that’s what RWB has to offer. We couldn’t be happier with the decision we have made to be a part of the RWB team,” said Platinum Vape co-founder George Sadler in RWB’s September 2, 2020 press release.
Source: Shutterstock
Platinum Vape Acquisition Terms
Red White & Bloom, via a wholly-owned subsidiary, has acquired all of Platinum Vape’s issued and outstanding equity interests in a cash and stock deal valued at up to USD $35 million.
The acquisition is made up of the following payments and potential future payments:
- Cash payment of USD $7 million paid at closing
- USD $13 million in cash payable 120 days after closing
- A USD $15 million convertible note payable on the third anniversary of the deal’s closing. The note may be converted into RWB stock after 12 months
- An additional payment of up to USD $25 million in either cash or stock payable to Platinum Vape security holders if PV achieves certain revenue targets and EBIT metrics in 2020 and 2021
- RWB has not assumed any long-term debt as a result of the PV acquisition, and the deal will not result in a change in control of Red White & Bloom
For more information related to the acquisition’s terms and conditions, please refer to 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 $0.66 per share, up 6.5% on the day. South of the border, the company’s U.S. listed RWBYF shares closed the day up 6.2% at $0.51.
With the highly accretive Platinum Vape acquisition now a done deal, investors can now own a piece of the newly combined company at what may likely be an all-time low stock price. Be on the lookout for future earnings reports from the company, which should tell a highly profitable story.
Source: Barchart
Investor Research Links:
CDN Listing | CSE: RWB
U.S. Listing | OTCQX: RWBYF- Website | IR Website | Investor Deck | RWB Chart | RWB Email Alerts
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Learn More About Platinum Vape: Website | Podcast | Instagram | Twitter | YouTube | LinkedIn
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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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