RWB Acquires Acreage's Florida Operations For $60M

February 25, 2021 8:56 am
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RWB Acquires Acreage's Florida Operations For $60M

Red White & Bloom Brands Inc. (CSE:RWB) (OTCQX:RWBYF) is purchasing Acreage Holdings Inc.’s (OTC:ACRGF) Florida operations.

Under the deal with Acreage’s subsidiary, High Street Capital Partners LLC, the Toronto-based company agreed to acquire all of the issued and outstanding shares of common stock of Acreage Florida Inc. for $60 million.

Transaction Details

The sum includes $5 million in an up-front cash payment, an additional $20 million in cash, $7 million in RWB’s common stock, and $28 million in vendor take back promissory notes.

RWB expects to close the transaction during the second quarter of 2021, or once all regulatory and market approvals are obtained.

Besides eight leased medical marijuana dispensaries, Acreage Florida is also selling its Sanderson–based property, including more than 15 acres of land with a 113,546 square feet facility for cultivation and processing, and an administrative office building spanning 4,360 square feet.

RWB plans to launch Platinum Vape products in the Sunshine State and leverage its previously signed licensing rights deal with Hightimes Holding Corp.

In January, the company wrapped up the $35 million purchase of Platinum Vape.

Following the finalization of current as well as pending acquisitions, RWB will be present in seven states, including California, Michigan, Massachusetts, Illinois, Florida, Arizona, and Oklahoma.

RWB Chief Executive Brad Rogers said Thursday that Florida has always been one of their targeted markets.

“Today, we have our path to entry into the third largest market by revenue in the US and are excited with what we can do with the brands we have amassed as well as the skill to execute on our vision,” Rogers noted.

Peter Caldini, CEO of Acreage, explained that the sale of Florida assets has allowed them to “significantly bolster our balance sheet and position us to accelerate our cultivation expansion projects and open additional dispensaries to support our growth into key adult-use cannabis states such as Illinois and New Jersey.”