Red White & Bloom Wraps Up 2021 By Settling CA$5.1M Debt, Refinances CA$12.8M Acreage Florida Acquisition Note

Red White & Bloom Brands Inc. RWB RWBYF announced Thursday that it has issued some 6.78 million shares to settle a CA$5.1 million ($4 million) debt.

The Transaction Details

The weighted average conversion price is roughly CA$0.75 per share ($0.56).

The Toronto and Orlando-based company will realize an accounting gain of approximately CA$2.3 million by settling the debt.

Debt Refinance

In addition, RWB disclosed that it has refinanced the CA$12.8 million principal amount of its “Seven-month” vendor take-back note issued to High Street Capital Partners, LLC in connection with RWB Florida LLC’s acquisition of all of the issued and outstanding shares of Acreage Florida, Inc.

Acreage sold its Florida operations to RWB in April for $60 million. The deal expanded RWB’s footprint to seven states, including California, Michigan, Massachusetts, Illinois, Florida, Arizona and Oklahoma.

To refinance, RWB entered into an agreement for approximately CA$14.6 million secured debenture on Nov. 29 from an arm’s length investor. The debenture carries interest at the rate of 10% annually and matures on May 30, 2022, unless accelerated under certain circumstances.

Stock & Option Issuance

The company also revealed that on Dec. 21, RWB granted the following:

• 500,000 stock options to a member of the board of directors at the price of CA$0.40. The shares will vest in one year.
• 35,000 restricted share units to a subcontractor for services at a deemed price of CA$1. The RSUs vest on issuance.

More recent news from RWB:

• Avicanna Debuts CBD Derma-Cosmetics Pura H&W In US Via Deal With Red White & Bloom

• Red White & Bloom Shares Plummet On Q3 93% YoY Revenue Growth

• Red White & Bloom To Install 30 Grow Pods, Expecting Yield Of $30M In Revenue
• Red White & Bloom Preferred Stock Shareholders To Lock-Up Over 50 Million Preferred Shares

RWBYF Price Action

RWB’s shares traded 2.22% higher at 34 cents per share after the market close on Wednesday.

Photo: Courtesy of Alexander Schimmeck on Unsplash