RWB has received all regulatory approvals and is closing its acquisition of PharmaCo, a Michigan-based cannabis company. This acquisition expands RWB’s footprint within the state, having initially only had a single product line in this market- the Platinum Vape(R) brand.
“I am pleased to announce that we have closed on the PharmaCo acquisition and now control all aspects of our Michigan Operations,” noted Brad Rogers, the Chairman and Chief Executive Officer (“CEO”) of RWB.
“This is a major milestone for RWB and its shareholders as we continue to execute key components of our growth strategy and build our house of brands across our core markets, as promised,” he added.
The acquisition was made via RWB Michigan, LLC, a wholly-owned RWB subsidiary, at a consideration of 37 million RWB units. Each unit consisted of one common share and one series 2 convertible preferred share in the capital of RWB. The transaction also involved converting $30 million in previous advanced loans to PharmaCo into preferred shares in the company issued by RWB Michigan immediately before closing, giving the company 100% ownership of PharmaCo.
This successful acquisition gives RWB access to 22 owned properties, including nine dispensaries and three cultivation sites in Glendale, Marquette, and Au Gres. RWB has also expanded its human resources within the State of Michigan by 180 employees and seeks to offer them competitive wages and incentives to share in the rewards of helping the company achieve its goals.
“We welcome the many talented PharmaCo employees to the RWB team to continue their good work,” noted Mr. Rogers. “We value their contributions and feel it is important to pay competitive wages and provide key leaders and employees with a stake in the company so they can share in the rewards of helping RWB achieve its goals,” he added.
Going forward, RWB looks to execute its initiatives that include extending its branded product lines, updating its dispensaries to heighten the customer experience, creating supply chain efficiencies, and growing revenue and profitability. This is possible given that the company now controls all Michigan operations, from growing the product to selling it.
Michigan is one of the top cannabis markets in the United States, accounting for over $1.79 billion in sales in 2021 alone. “We are now in the driver’s seat on over 20 assets across Michigan- one of the largest and fastest-growing cannabis markets in the country,” reckoned Mr. Rogers.
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