Red White and Bloom Brands Inc (fka RWBYF)

[MustBeTheTruth]

Red White & Bloom Brands Executes Formal Agreement to Acquire Platinum Vape; Announces Q2 2020 Quarterly Report, First Since Public Debut

https://ir.redwhitebloom.com/news-events/press-releases/detail/55/red-white-bloom-brands-executes-formal-agreement-to?fbclid=IwAR0MToFr-lR2xliYwLqz--nRqD_mfe3d6tsPll68N9QSv2pc11fGoRgn2zQ

The Platinum Vape acquisition is expected to close on or about September 15, 2020, and is not reflected in the quarterly results. Platinum Vape has current annualized revenues of more than CAD $102 million with EBITDA between 25%-30% before forward synergies

The Company’s investment in PharmaCo, the owner of significant Michigan cannabis operations, is not reflected in the quarterly results as the Company has not yet closed on the acquisition. The company has now begun to complete the acquisition and will complete subsequent to State regulatory approval. This pending acquisition requires no cash to close and only requires the issuance of 37 million common shares and 37 million series 2 preferred shares1

Adjusted EBITDA for the three months ending June 30, 2020 was $6.5 million which excludes both Platinum Vape and PharmaCo

Cash position of $2.6 million expected to grow upon closing of the previously announced $25 million bought deal financing

Gross margin before biological adjustments was 81% representing an all-in cash cost of $0.10 per gram of hemp flower, which is similar in cost to outdoor-grown, lower-value CBD