Red White & Bloom Buys Cannabis Conglomerate Platinum Vape

Red White & Bloom Brands RWB RWBYF has agreed to acquire Platinum Vape in a transaction valued between $35 million and $60 millionn.

This is RWB's first acquisition since the company's initial public offering.

According to the press release, the acquisition includes a $7 million cash payment at closing, $13 million within 120 days and $15 million in 12-month convertible notes. In addition, Platinum Vape selling securityholders will receive up to $25 million on the first anniversary of the closing of the deal, contingent on the company hitting certain financial milestones.

The deal is expected to close in the current quarter.

Platinum Vape’s product portfolio includes vape cartridges, edibles, packaged flower, and pre-rolls.

“George and Cody, the founders and operators of Platinum Vape, are visionaries in the cannabis market and have done an incredible job in building the pre-eminent vape company in the United States through commitment to quality, education, and the communities they serve,” RWB chair and CEO Brad Rogers said. “One of the things that struck me is the balance they have achieved in running a profitable successful business, which will add tremendously to RWB's top and bottom lines while maintaining their commitment to supporting social issues, both financially and through awareness with the REACT program they established.”

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