Red White & Bloom Brands Q2 Revenue Improves 13% QoQ To $13.3M, Signs Agreements To Restructure $20M Debt

A multi-state cannabis operator Red White & Bloom Brands Inc. RWB RWBYF reported its select second-quarter financial results Monday and subsequent events revealing quarterly revenue of $13.3 million up by 13% from $11.8 million in Q1, 2021. The Toronto-based company also disclosed adjusted sales for the first six months of $58.5 million.

Second-quarter financial and operational highlights

• Gross Margin (excluding adjustments for biological assets) was $9.5 million in Q2, 2021.
• RWB received the Florida Department of Health, Office of Medical Marijuana Use approval and closed on the acquisition of Acreage Florida, which is licensed to operate medical marijuana dispensaries, a processing facility and a cultivation facility in Florida.
• Secured 30 double wide fully enclosed cultivation pods that collectively provide approximately 19,000 square feet of turn-key cultivation space, with 14,400 square feet of canopy capable of producing in excess of 7,000 lbs of flower annually, as well as thousands of pounds of trim and shipped them to Florida.
• RWB completed the more comprehensive portion of Michigan’s two-step application process, or “prequalification”, for medical marijuana licensing through a wholly-owned operating subsidiary, RWB Michigan, LLC.
• Completed $52 million in financing transactions and retired $7.7 million of debt.

“We continue to make great strides with our branded products and see momentum in Q2, which has teed up Q3 nicely, and will translate into a strong second half,” Brad Rogers, chairman & CEO stated.“In Florida, after closing the acquisition at the end of April, we have made strategic investments that are allowing us to quickly ramp up capacity as well as complete construction for new store openings before the end of 2021."

Second-quarter subsequent event highlights

• Closed on the acquisition of an operational 45,000 square foot greenhouse situated on 4.7 acres of land in Apopka, Florida. RWB expects a Q4 2021 harvest schedule at this facility.
• Exercised the Company’s option to extend the maturity of its credit facility to January 2022, with the option to further extend to July 2022.
• Retired approximately $10 million of debt.
• Entered into agreements to restructure $20 million of debt, expected to close over the first week of September 2021, which will see the maturity date moved to January 2023.

More recent news from Red White & Bloom Brands:

Red White & Bloom Cannabis Shares Slightly Down After Drop In Q1 2021 Revenue

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

Red White & Bloom Raises $44.5M To Fund Expansion Initiatives In Michigan And Florida, Retires $7.7M in Debt

Price Action

Red White & Bloom’s shares closed Monday market session 6.78% lower at 77 cents per share.

Photo: Courtesy of Alex Woods on Unsplash