Red White & Bloom Shares Slightly Up On 158% Higher Q4 Revenue Of $15.7M Thanks To Platinum Vape Acquisition

Multi-state cannabis operator Red White & Bloom Brands Inc. RWBYF posted its fourth-quarter and full-year 2020 earnings Thursday with quarterly revenue of $15.7 millionup by 158% from $6.1 million in the third quarter of 2020. 

The Toronto-headquartered company attributed higher quarterly revenue to the reporting of the first full quarter post and the completion of its Platinum Vape acquisition

Financial Highlights 

  • Full-year revenue hit $23.3 million, which compares to nil in 2019; Full-year adjusted sales amounted to $37.8 million;
  • Gross profit for the year was $13.35 million, or 57% of revenue, compared to nil in the prior year;
  • Full-year net loss was $18.6 million versus $12.5 million in 2019; RWB noted that the higher net loss can be accredited to $15.3 million higher depreciation and amortization, a one-time listing cost of $31.7 million, and other expenses.

Milestones Achieved During And After 2020

  • The company completed $35 million worth of acquisition of Platinum Vape, which is licensed in California and whose products are available across Michigan and Oklahoma; 
  • RWB also completed the acquisition of Mid-American Growers that run 3.6 million sq. ft. glass greenhouse in Illinois;
  • It funded $75 million to PharmaCo, a Michigan-headquartered cannabis company with 18 dispensaries and several growing facilities; 
  • Since January 1, 2020, RWB managed to raise more than $110 million in both debt and equity, having cash on hand of around CA$41 million ($32.6 million) on July 2, 2021;
  • RWB finalized or signed definitive agreements to buy THC licensed entities across Michigan, Illinois, Florida, California and Massachusetts, with total consideration for both completed and pending mergers in excess of $250 million
  • Upon finalization of all purchases, the company and its brands will be reachable across six of the top 10 states based on cannabis revenue.

“RWB had a transformative year in 2020 with the closing of two significant acquisitions, the completion of our go public transaction and the establishment of our first THC operations and brands,” Brad Rogers, CEO and chairman stated. “We raised well over US$100 million to support our expansion and operations and exited the year with wind at our backs. I would like to thank our team for a tremendous year as well as their individual and team accomplishment.”

Price Action 

Red White & Bloom shares closed Thursday’s market session 6.52% higher at 98 cents per share.

Photo: Courtesy of Kym MacKinnon on Unsplash

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Posted In: CannabisEarningsNewsMarketsBrad RogersRed White & Bloom earnings
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