Red White & Bloom To Acquire PharmaCo

Red White & Bloom Brands Inc. RWB RWBYF disclosed its intention to exercise an option to take over an investee.

The acquisition comes as a part of the financing deal between the Toronto-based company and PharmaCo. Inc.

RWB invested in PharmaCo through a subsidiary — MichiCann Medical Inc. — in 2018.

RWB submitted its change of ownership application with the Michigan Regulatory Agency.

RWB, formerly known as Tidal Royalty Corp, began trading on OTCQX Best Market last month.

The acquisition of PharmaCo, which has been expanding its cultivation capacity in Michigan, will "simplify and streamline" RWB's structure, said Brad Rogers, the company's CEO in a statement.

"Now that we have completed our go public transaction, we felt that the time was right for us to take the next step of rolling our critical mass asset base together in what we believe is one of the top 3 most important cannabis states by market size and potential," continued Rogers.

According to the recent report from Michigan State University, Michigan's cannabis market is "maturing rapidly."  

Estimations are that retail cannabis sales will reach "approximately $3 billion with a total economic impact in excess of $7.8 billion," the study said.

Rogers believes it's time to "enter this large and important market, taking advantage of PharmaCo's early mover advantage."

In June, Hightimes Holding Corp. granted RWB a license for branding of High Times medical and recreational dispensaries and CBD and THC products within Michigan, Illinois, and Florida.

Courtesy photo