Marijuana multistate operator Red White & Bloom said it completed a restructuring that included selling an Illinois cultivation facility, repaying $51.7 million of debt and reducing its work force and suppliers.
The Toronto-based company said the moves strengthen its balance sheet by eliminating $115 million in liabilities and more than $22 million in annual expenses.
Red White & Bloom now projects that it will achieve a positive EBITDA (earnings before interest, taxes, depreciation and amortization) before year-end.
The company’s moves included:
- Selling its Granville, Illinois, cultivation facility for $56.1 million to New Branches of California.
- Paying off $51.7 million of secured debt, a move that eliminates $6.3 million of annual interest. The company said it is paying off $3.8 million in additional liabilities.
- Eliminating more than $13 million of annual operating expenses.
- Saving more than $2.5 million through reductions in workforce, suppliers and consultants. Exact employee head-count reductions weren’t announced.
- Potentially eliminating $60 million in future royalty payments by streamlining brands.
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Red White & Bloom still has operations in Illinois as well as Arizona, California, Florida, Michigan and Oklahoma, according to the company’s website.
The company recently closed on an acquisition of a Michigan marijuana company.