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Vertically integrated cannabis company Acreage Holdings, Inc. (OTCQX:ACRGF) has sold its Florida operations to Red White & Bloom Brands, Inc. (CSE:RWB) (OTCQX:RWBYF).
The New York-based company said Wednesday it has closed apreviously announced deal to divest 100% of its Acreage Florida, Inc. subsidiary to RWB.
The Acreage Deal Details: Under the terms of the agreement with Acreage’s subsidiary High Street Capital Partners LLC, RWB opted to purchase all of the issued and outstanding shares of common stock of Acreage Florida Inc. for $60 million.
The price tag includes $5 million in an upfront cash payment, an additional $20 million in cash, $7 million in RWB’s common stock and $28 million in vendor take-back promissory notes.
The deal also includes the sale of Acreage's Sanderson-based facility comprised of more than 15 acres of land with a roughly 11,000-square-foot cultivation area as well as a freestanding administrative office building spanning 4,000 square feet.
Why It Matters: Acreage CEO Peter Caldini said the deal is a “significant milestone” for the company “as it accelerates our path to profitability.”
Alongside other pending acquisitions, the deal expands RWB’s footprint to seven states: California, Michigan, Massachusetts, Illinois, Florida, Arizona, and Oklahoma.
What’s Next For Acreage: Acreage said it intends to utilize the proceeds from the transaction to pursue “significant adult-use sales growth opportunities in New Jersey, New York and other Northeast states where Acreage operates,” Caldini added.
RWB said earlier that it plans to introduce Platinum Vape products in the Sunshine State as well as leverage its previously signed licensing rights deal with Hightimes Holding Corp.
Photo by davide ragusa on Unsplash.
