Red White & Bloom Brands Inc. (CSE:RWB) (OTC:TDRYD) announced this morning that it entered into a Definitive Agreement to acquire the licensing rights for the branding of High Times® dispensaries and High Times cannabis-based CBD and THC products in the States of Michigan, Illinois and Florida and branding of High Times hemp derived CBD products nationally in the United States carrying the Culture® brand.
Here’s what you need to know…
- Under the terms of the Definitive Agreement, RWB will acquire the rights to exclusively brand both medical and recreational dispensaries and cannabis products within the States of Michigan, Illinois and Florida.
- RWB plans to sub-license to its investee in Michigan for its 18 planned and operational dispensaries, to be rebranded as High Times stores and allow the investee to create and sell cannabis derived products both within their own locations as well as to third parties in Michigan.
- The Definitive Agreement includes RWB securing the rights from HT Retail Licensing, LLC to Culture® for the branding of CBD and whole hemp flower products nationally in the United States.
- Initial plans are to grow and manufacture these best-in-class products from its massive 3.6 million square foot facility in Illinois.
- In addition to dispensaries becoming High Times branded destinations, RWB plans to introduce High Times branded products including flower, vapes, tinctures, topicals, and edibles through both owned and other third party outlets, subject to the licensing agreements for each respective state.
- RWB’s US footprint currently spans Michigan, Illinois and Massachusetts. With a combined cultivation footprint of over 4,000,000 square feet, 600 employees and 22 individual facilities, RWB’s mandate is to operate at scale in select states that provide the greatest return for our partners and shareholders.
- The deal is in exchange for $15,000,000 USD worth of common shares of RWB at a deemed price of $1.50 CAD per share.
- Closing is subject to a number of corporate, regulatory and other approvals and conditions and is expected to occur on or about June 9, 2020. A finder’s fee will be payable on this transaction.
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