Red White & Bloom Posts $32.2 M In Adjusted Sales In Q1 2021, Builds Upon Michigan Footprint

Red White & Bloom Brands Inc. RWB RWBYF announced Tuesday partial results for the first three months of 2021, without contributions from RWB Michigan, RWB Florida and RWB Illinois.

The Toronto-based company reported having earned CA$32.2 million ($26.7 million) in adjusted sales over the period, representing a sequential increase of 2.4%.

In addition, adjusted EBITDA came in positive at $460,000 for the first three months of this fiscal year.

RWB Michigan: RWB is pawing its way toward establishing itself in Michigan, as it recently announced the completion of the two-step application process for marijuana licensing in the Great Lake State through RWB Michigan LLC, its wholly-owned subsidiary.

Brad Rogers, RWB chairman and CEO, called it the most "arduous step" in licensing for the company.

“We now have a clear path to gain control of the assets in Michigan, formerly nurtured by our investee,” Rogers added.

The move came on the heels of launching High Times branded THC at 23 retail locations (provisioning centers) across the state.

The sale of an exclusive line of High Times branded cannabis products in Michigan was initially kicked off in December, just months following the signing of a deal between Hightimes Holding Corp and RWB.

The company plans to start with the rebranding of its existing stores in Michigan to High Times in the coming weeks.

RWB Florida: In February, the company entered into a deal to purchase Acreage Holdings Inc.’s ACRGF Florida operations for $60 million. The acquisition, which closed in April, included eight leased medical marijuana dispensaries in the Sunshine State and a Sanderson–based property comprised of 5 acres of land with a cultivation and processing facility.

RWB Illinois: In Illinois, RWB is poised to purchase a THC cultivation license as well as other assets by issuing up to 22 million common shares to shareholders of Cannabis Capital Partners Inc. In February, the company raised some $13.5 million to fund the closing of the transaction announced in December.

“In Florida and Illinois, we are earlier in the THC business cycle but will start in Florida with our immediate cultivation expansion as we ready to open additional stores later this year,” Rogers explained.

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