Red White & Bloom To Acquire Beleaguered Canadian Cannabis Operator Aleafia
Portfolio Pulse from Maureen Meehan
Red White & Bloom Brands Inc. (RWB) has entered into a binding letter agreement to acquire Canadian cannabis operator Aleafia Health Inc. in a share-exchange agreement. RWB will provide a $17.5 million credit facility to Aleafia as part of the deal and plans to sign a $30 million credit facility of its own.
June 07, 2023 | 11:59 pm
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Aleafia Health Inc. will be acquired by Red White & Bloom Brands Inc. in a share-exchange agreement, with RWB providing a $17.5 million credit facility to Aleafia.
The acquisition will recapitalize Aleafia's balance sheet and provide its shareholders with access to a larger market capitalization and exposure to the U.S. recreational and medical cannabis markets. This is expected to have a positive impact on Aleafia's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Red White & Bloom Brands Inc. will acquire Aleafia Health Inc. in a share-exchange agreement, providing a $17.5 million credit facility to Aleafia and expanding its footprint in the cannabis market.
The acquisition of Aleafia will expand RWB's footprint to the largest federally legal cannabis market globally and create one of the most dynamic cross-border companies in the industry. This is expected to have a positive impact on RWB's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100