Canada-based multistate operator Red White & Bloom Brands (RWB) closed its acquisition of PharmaCo, a Michigan marijuana company.
Toronto-based RWB announced its plan to buy PharmaCo in July 2020, exercising its right to acquire the company as part of a financing relationship.
Under terms of the all-stock acquisition, Red White & Bloom will issue 37 million units, each unit containing one common share and one convertible preferred share in RWB.
RWB is issuing more units to some of PharmaCo’s creditors to settle debts.
The acquisition includes:
- Eight cannabis stores in operation, plus two more that are ready to open.
- Two indoor cultivation facilities.
- One outdoor cultivation site.
- Other owned properties that could be used as cultivation or retail sites.
RWB already operates a manufacturing facility in Michigan.
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In a news release, RWB Chair and CEO Brad Rogers said the company’s Michigan plans “include extending our branded product lines, updating our dispensaries to heighten the customer experience, creating supply chain efficiencies and growing revenue and profitability.”
Red White & Bloom shares trade on the Canadian Securities Exchange as RWB and on U.S. over-the-counter markets as RWBYF.