Red White & Bloom Brands has agreed to acquire Aleafia.
"The intended acquisition of Aleafia expands our footprint to the largest federally legal cannabis market globally," said Brad Rogers, CEO and Director of RWB. "Combining our award-winning brands and IP with Aleafia's proven cultivation, manufacturing, and distribution capabilities creates one of the most dynamic cross-border companies in the industry. We continue to focus on delivering significant value to our shareholders and believe this transaction aligns with that commitment."
"The potential acquisition of Aleafia represents a transformative milestone for RWB. It provides a well-established distribution beachhead for RWB and its premium Platinum brand into the Canadian market, opens up the larger U.S. market to Aleafia's select brands through RWB's distribution and retail channels, and provides both companies with an opportunity to mutually leverage their respective competencies in the areas of cultivation, procurement, product development, and sales and marketing," said Eddie Mattei, CFO of RWB. "Working together, we believe RWB and Aleafia are well positioned to capitalize on value-added synergies that will ultimately enhance the profitability of the Combined Company."
"The Canadian cannabis market has the potential to be a dynamic industry and is rapidly experiencing consolidation. In 2022 and 2023, Aleafia has achieved significant milestones, including growing the Divvy brand through expansion into five provincial markets and bolstering its international business through sales into Europe and Australia. The Proposed Transaction is the next step in the Aleafia story as it enhances our size and scale, which is a critical requirement to compete in this market, and provides Aleafia improved access to capital to execute on our strategic growth opportunities," said Tricia Symmes, Chief Executive Officer of Aleafia.
"This is a prime opportunity for Aleafia to merge with a multi-state operator. The Proposed Transaction would recapitalize Aleafia's balance sheet and provide our shareholders with access to a larger market capitalization and exposure to the U.S. recreational and medical cannabis markets," said Matt Sale, Chief Financial Officer of Aleafia. "The improved financial flexibility and capacity of the Combined Company will enhance the ability to execute organic and acquisitive growth strategies," continued Mr. Sale.
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Red White & Bloom