- Adult Use (recreational) license award marks final major regulatory hurdle to complete the Company’s long-awaited Michigan acquisition consisting of significant retail, cultivation and real estate assets having 2020 revenue of US$69 million (excluded from RWB 2020 financial statements)
- Having both medical and recreation approval allows the Company to complete the pending, fully-paid for (not including pre-allocated restricted stock issuances) Michigan acquisition of “Investee” through first customary asset purchase agreement and then a final walk-through inspection by the State (step 2)
- Operating assets to be brought onto RWB’s income statement and balance sheet include: 18 Michigan dispensaries (8 operating; 2 historically operating; 8 ready-to-open); 4 cultivation facilities (2 indoor; 1 outdoor; 1 retrofit-ready indoor); significant company-owned real estate holdings
Red White & Bloom Brands Inc. (CSE: RWB and OTCQX: RWBYF) (“RWB” or the “Company”) a multi-state cannabis operator and house of premium brands, today announced that it has received Adult Use (recreational use) prequalification status pursuant to the licensing provisions of the Michigan Regulation and Taxation of Marihuana Act (MRTMA) and associated rules through a wholly owned operating subsidiary, RWB Michigan, LLC.
This Marijuana Regulatory Agency (“MRA”) approval represents the authorization of the Company to move forward with its full operational strategy in the State and complete the licensing process for its intended facilities.
“Michigan has been one of the highest bars of entry to any market we’ve entered. The regulatory body has done it right, and all stakeholders should feel comfort with the level of scrutiny and governance they require to be compliant operators. This now provides a clear path for us to fully execute on our strategy of being the house of brands and being great channel partners to all of our distribution points as well as our own planned flagship retail locations,” said RWB CEO and Chairman Brad Rogers.
“Michigan provides RWB access to a market with a population of approximately 10 million people and where in the month of July cannabis consumers were responsible for $171 million in sales generating more than $23 million in tax revenue for Michigan's roads, schools, municipalities, and counties.”
“In only its second full year of adult-use sales, Michigan’s legal cannabis market is emerging from the pandemic ripe with opportunity. With a run-rate behind only California and Colorado, Michigan’s early 2021 sales have put the state on pace to not only break the $2 billion sales threshold but, also blow right past it.”
“Given the number of documents and rigorous background check process, pre-qualification is the most significant regulatory hurdle in the Michigan marijuana licensing process.”
Rogers concluded: “We are about to finally deliver to our Shareholders the financial results from our judicious investments in the great state of Michigan. We look forward to bringing exceptional quality, price and experience through our house of brands that are second to none to loyal consumers in Michigan. Additionally, we look forward working closely with regulators in Michigan to set new standards as the market continues to evolve.”
About Red White & Bloom Brands Inc.
The Company is positioning itself to be one of the top three multi-state cannabis operators active in the U.S. legal cannabis and hemp sector. RWB is predominantly focusing its investments on the major US markets, including Michigan, Illinois, Massachusetts, Arizona and California with respect to cannabis, and the US and internationally for hemp-based CBD products.
For more information about Red White & Bloom Brands Inc., please contact:
Brad Rogers, CEO and Chairman
Tyler Troup, Managing Director
Circadian Group IR
Visit us on the web: www.RedWhiteBloom.com
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FORWARD LOOKING INFORMATION
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. There is no assurance that these transactions will yield results in line with management expectations. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.
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