Red White & Bloom Preferred Stock Shareholders To Lock-Up Over 50 Million Preferred Shares

Cannabis company Red White & Bloom Brands Inc. RWB RWBYF announced Monday that its certain shareholders, representing over 50 million RWB Series II Preferred Shares, have agreed to a non-conversion lock-up period for their preferred shares for a six months term.

The term expires on April 24, 2022, when the preferred shares are slated for automatic conversion into common shares of the Toronto-based company.

In addition, under the agreement, the locked-up shareholders can maintain their current rights as preferred share shareholders, including the 5% accrued dividends that form part of the preferred share features, as well as a change of control clause that would accelerate the conversion date if there is a change of control of the Red White & Bloom.

Brad Rogers, CEO and chairman of RWB, said the company's leadership and "a number of shareholders believe in RWB's long-term house of premium brands strategy to lead the US cannabis industry."

"We are continuing to strengthen every aspect of the company," Rogers continued. "Those that have been following us recognize the significant transformation that we are undertaking with additions to our team, expansion of our brands, and the imminent operationalizing of key investments we have made over the last couple of years. This lock-up extension reflects confidence in the company's vision and long-term growth potential by its founders, management, and shareholders."

More recent news from Red White & Bloom:

• Red White & Bloom Completes Platinum Vape Management Transition, Reduces $12.5M of Liabilities
• Red White & Bloom Brands Launches Grow Operations, Obtains Grow License At Apopka Greenhouse
• Red White & Bloom Brands Refinances Roughly $19M Of Short-Term Debt
• Red White & Bloom Florida Facility Ready To Produce Edibles
• Red White & Bloom Receives Final Approval To Launch Adult-Use Cannabis Sales In Michigan

RWBYF Price Action

Red White & Bloom's shares traded 1.80% lower at $0.5568 per share at the time of writing Monday morning.

Photo: Courtesy of Esteban Lopez on Unsplash