+ 4.55
+ 1.46%
+ 1.24
+ 0.4%
+ 2.97
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+ 1.37
+ 0.8%

RWB Completes Cash Payments For $35M Platinum Vape Acquisition

January 13, 2021 12:38 pm
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RWB Completes Cash Payments For $35M Platinum Vape Acquisition

Red White & Bloom Brands Inc. (CSE:RWB) (OTC:RWBYF) has wrapped up its purchase of Platinum Vape.

The Toronto-based company made a final cash payment of $13 million to the sell-side of the $35 million deal.

RWB said that the Platinum branded products' sales surpassed $2.8 million in the one week ending Jan. 10. The company is now working on launching Platinum products in Arizona, and pursuing expansion opportunities in other states.

"I'm very proud of our team at PV who continue to exponentially outperform the market and add accretive value to RWB," RWB Chief Executive Brad Rogers said. "I am happy to have this milestone completed and pleased to see the excitement the entire RWB team brings in to work every day and their drive to replicate this growth across the organization."

Separately, the company has secured some $11 million in financing through a private placement deal. RWB said it has issued an $11.5 million principal amount debenture to an arm's-length investor.

The debenture carries an interest rate of 1% per month, and it's not convertible.

The company said it would utilize the proceeds for working capital purposes.

RWB debuted on OTCQX in June

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