Red White & Bloom (CSE: RWB) this morning announced that it has inched one step closer to completing its acquisition of assets in Michigan. The company has reported that it has received what is referred to as adult use prequalification status from the state.
The approval comes from the Marijuana Regulatory Agency, operating under the Michigan Regulation and Taxation of Marihuana Act within the state. The approval has been granted to RWB Michigan, which effectively authorizes the firm to move forward with its operational strategy set out for the state, and to push forward with the licensing of its facilities.
Prequalification within the state is the most rigorous portion of the licensing process, a function of the background check process conducted by the regulator. With this step now complete, RWB has a path to securing its asset in the state and consolidating its results on its balance sheet, which last year generated revenue of US$69 million from its retail and cultivation assets.
Next, the company will look to complete its asset purchase agreement, which will then be followed by a final walk through inspection by the state. The latest prequalification approval will enable both medical and adult use assets to be formally acquired by the company, all of which is already paid for.
“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,” CEO Brad Rogers commented on the announcement.
The company’s Michigan assets, once formally brought under the RWB banner, will consist of 18 dispensaries, of which 8 are operating, and 8 are ready to open, four cultivation facilities, and “significant” real estate holdings.
Red White & Bloom last traded at $0.99 on the CSE.
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