Red White & Bloom Closes Acquisition Of Platinum Vape

Red White & Bloom Brands Inc. RWB RWBYF finalized the previously announced purchase of Platinum Vape.

The acquisition is effective Monday, Sept. 14. Under the deal, RWB acquired all Platinum Vape’s issued and outstanding equity interests through its fully-owned subsidiary.

The cash and stock transaction is valued at up to $35 million.

The price tag includes $7 million in cash paid at closing, $13 million in cash payable in three months following the closing, and a US$15 million convertible promissory note.

In addition, the cannabis conglomerate could secure an up to $25 million in additional funding, which the Toronto-based company agreed to pay either in cash or in its stock if PV achieves particular revenue targets and EBIT metrics.

PV’s current annual revenues amount to over $75 million. Moreover, its products are sold in more than 700 stores across Michigan, California and, Oklahoma.

“We are happy to have all the details of this acquisition now wrapped up and have this transaction closed,” commented RWB’s chairman and CEO Brad Rogers.

“I think it was important to get this transaction completed and have the great team at Platinum Vape join us as we look to further expand our footprint in the U.S,” added Rogers.

RWB’s Recent Moves

RWB said Monday it has issued CA$10 million convertible debenture through a private placement on Friday, Sept. 11.

The convertible debenture issued to an arm’s-length investor carries interest at 5% annually, and it would mature once the company’s previously announced and amended bought deal financing co-led by PI Financial Corp., and Eight Capital is finalized.

Meantime, in July, RWB agreed to take over its investee Pharma Co. Inc. It’s the second company, which RWB opted to take over since its debut on OTCQX in June.

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