Toronto Weed Producer Seals Deal For Over $100M In Annual Revenue As RWB Finalizes Aleafia Health Buyout
Portfolio Pulse from Jelena Martinovic
Red White & Bloom Brands Inc. (RWB) has completed the acquisition of Aleafia Health Inc. and its subsidiaries for a total consideration of $31,667,700. The deal includes intellectual property assets, shares in Emblem Cannabis Corporation, Canabo Medical Corporation, and Aleafia Retail Inc., and a 9.4% stake in One Plant (Retail) Corp. This acquisition expands RWB's sales channels across five Canadian provinces, medical channels across Canada, and international channels to Australia, Germany, and the UK. It also includes cultivation and storage facilities in Ontario. The combined entity is expected to generate CA$140 million in annualized revenues and be accretive on an EBITDA basis in fiscal 2024. RWB shares traded lower by 7.6923% at $0.06 per share following the announcement.
January 16, 2024 | 3:36 pm
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NEGATIVE IMPACT
RWB's acquisition of Aleafia Health is expected to significantly expand its market presence and revenue streams, with projected annualized revenues of CA$140 million. However, RWB's stock price dropped by 7.6923% to $0.06 per share after the announcement.
The acquisition is a significant strategic move for RWB, indicating potential for revenue growth and market expansion. However, the immediate negative stock price reaction suggests short-term investor concerns or profit-taking. The long-term impact may be positive if RWB successfully integrates Aleafia's assets and realizes the anticipated synergies and revenue growth.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100