This morning, new issuer Red White & Bloom Brands (CSE: RWB) announced that it has signed a definitive agreement to acquire licensing rights of the High Times brand for dispensaries and CBD and THC products in the states of Michigan, Illinois, and Florida, along with the branding of hemp products nationally across the USA.
The transaction, valued at US$15.0 million, is occurring through the issuance of shares at a price of $1.50 per share. The transaction is somewhat oddly structured, in that a new corporation was created by High Times, whom was then ascribed the rights of branding within the states of Florida, Michigan, and Illinois for both products and dispensaries. Red White & Bloom then subsequently purchased the newly incorporated firm via the issuance of shares.
Under the terms of the definitive agreement, Red White & Bloom will acquire exlusive rights to brand medical and recreational dispensaries under the High Times brand within the three states. As a result, RWB will see its 18 planned and operational dispensaries in Michigan rebranded as High Times retail stores. The retail locations will also create and sell cannabis branded under High Times product lines, with RWB also selling branded product to other dispensaries in the state.
The agreement will also see RWB secure the rights to the Culture brand of CBD and whole hemp flower products nationally, with initial plans consisting of growing and manufacturing these products from Red White & Blooms 3.6 million square foot facility in Illinois.
Red White & Bloom Brands currently has operations in the states of Michigan, Illinois and Massachusetts.
Information for this briefing was found via Sedar, Red White & Bloom Brands and Hightimes Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
