Red White & Bloom To Purchase Illinois THC Cultivation License, Secures $60M In Financing
The Toronto-based will pick up the issued and outstanding shares of Cannabis Capital Partners Inc. (CCP), by issuing up to 22 million common shares to CCP's shareholders.
The acquisition allows RWB to concurrently purchase Shelbyville-based cultivation and manufacturing operation spanning 23,572 square feet, alongside related inventory and 2 acres of land.
By obtaining one of twenty-one original "super licenses," the Prairie State issued, RWB has an option to expand the operation to include 220,000 square feet of THC cultivation canopy, bringing it to a total of approximately 450,000 square feet of cannabis operations.
The purchase price CCP agreed to pay for Illinois-based THC Cultivation Center and associated assets includes $16.25 million in cash at closing and $16.25 million in the form of an 8%, interest-only, 18-month note to the seller with $8.75 million due in 30 days following the regulatory approvals to relocate the permit.
Upon closing of the acquisition and receipt of regulatory approvals, the cultivation licenses would be migrated to the Granville, Illinois-based 3.6 million square foot cultivation facility operated by RWB's wholly-owned subsidiary Mid-American Growers Inc.
"I believe that these assets, coupled with our commitment to social equity programs and corporate citizenship, will provide us with a great opportunity for growth," RWB's Chairman and CEO Brad Rogers disclosed.
RWV To Raise $60M To Fund Illinois Acquisition
Separately, RWB has secured $60 million in financing under a non-revolving credit facility with an arm's-length institutional lender.
RWB said Thursday it intends to raise funds in two tranches, including $40 million on initial closing and $20 million upon finalizing the acquisition of the Illinois THC cultivation license and associate assets.
The proceeds would be utilized for repaying existing debts, working capital, general corporate purposes, and the funding of the Illinois acquisition.
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