RWBYF - Red White & Bloom Brands Transitions to International Cannabis Company Through Closing of Aleafia Transaction | Benzinga
Combined company forecast to generate C$140 million in distribution and retail annualized revenues across North American and international sales channels
Expected to realize annualized operating cost and cash synergies in excess of C$12 million
RWB and Aleafia to service a combined 2,500+ retail locations in North America and select distributors in emerging international markets
TORONTO, Jan. 15, 2024 (GLOBE NEWSWIRE) -- Red White & Bloom Brands Inc. (CSE:RWB, OTC:RWBYF) ("RWB") is pleased to announce that, in connection with the proceedings of Aleafia Health Inc. ("Aleafia Health") and certain of its subsidiaries (collectively, the "Aleafia Group") under the Companies' Creditors Arrangement Act (the "CCAA Proceedings"), the parties have successfully closed the previously announced sale transaction (the "Transaction"), as further described below.
"We are excited to announce the successful closing of our acquisition of the Aleafia group of companies," stated Colby De Zen, President of RWB, adding, "This pivotal moment signifies a transformative phase for RWB's future, strengthening our presence in legal markets across North America and positioning us for global expansion. The integration of Aleafia's brand portfolio and assets, combined with our acclaimed Platinum Vape brand, generates a robust footprint across recreational, medical, and international sales channels. Furthermore, we anticipate achieving annual synergies exceeding C$12 million between RWB and the Aleafia Purchased Entities while promoting revenue growth, margin contribution, and value for all shareholders."
"The Aleafia acquisition aligns seamlessly with RWB's goals of expanding its global footprint and fortifying its position in global cannabis markets," stated Eddie Mattei, CFO of RWB. "The accretive nature of the Transaction has been evident to RWB management since the inception of the relationship with the Aleafia group of companies. With the financial support and ongoing commitment provided by RWB through the CCAA proceedings, Aleafia has already realized the benefit of multiple cost and cash improvements that will contribute to the combined company's prospective financial performance. With the closing behind us, the combined, dedicated RWB and Aleafia teams are focused on delivering accessible synergies focused within sales, production, procurement, and marketing."
The Aleafia acquisition provides several strategic benefits to RWB shareholders through the ability to leverage capabilities garnered from:
- Three core sales channels including: (1) recreational (distributed to five provinces: Ontario, Alberta, British Columbia, Saskatchewan, and Manitoba); (2) medical (distributed across Canada direct to patient subscribers); and (3) international (exported to Australia, Germany, and the United Kingdom to date).
- One of Canada's largest virtual medical cannabis clinics that provides quality cannabis products to patient subscribers in a convenient and low-cost setting. Solutions for valued patients are tailored by experienced staffed physicians and nurse practitioners who strive to provide the highest quality health and wellness services.
- An 86 acre, low-cost, outdoor cultivation site located in Port Perry, Ontario (the "Port Perry Facility"), which is one of Canada's largest outdoor cannabis cultivation facilities. The Port Perry Facility features 35,000 square feet of federally licensed indoor drying and storage facilities – a critical function in the cannabis supply chain. The facility produces cannabis for use in various finished good formats that can be sold under the Aleafia Group's recreational and medical (direct to patient) sales channels. Proven cultivation capacity to date is in excess 30,000 kilograms annually.
- A 65,000 square foot, federally licensed, EU-GMP specified cultivation, processing, and packaging facility strategically located in rapidly developing Southwestern Ontario industrial hub Paris, Ontario (the "Paris Facility"). The Paris Facility currently cultivates approximately 1,200 kilograms of high-quality indoor flower and can extract and manufacture approximately 50,000 kilograms of cannabis derivatives; including, edibles, oil, capsule, sublingual, vape cartridge, topicals and other formats. The Paris Facility also houses Aleafia's GMP-certified innovation and product development laboratory.
- An established portfolio of loyal cannabis brands in both adult use (recreational) and medical channels. Specifically, cannabis products are sold through Aleafia's leading profile brands, Emblem and Divvy.
As part of the Transaction, RWB also acquired a 9.4% ownership interest in One Plant (Retail) Corp., which operates a network ...