fbpx
Digital - Business - Media

Red White & Bloom Brands: From Two Michigan Dispensaries To National Player

After parting ways with CannTrust Holdings two and a half years ago, Brad Rogers has clearly chosen the right path. With a relationship sullied over philosophical differences of direction—largely stemming from his former Board’s reluctance to consider making investments in Michigan’s burgeoning cannabis market—Brad’s decision to build down south is paying huge dividends. After joining MichiCann Medical shortly after departing CannTrust, which later amalgamated with Tidal Royalty to form Red White & Bloom Brands (RWB), the latter is making headway as it quickly becomes a top tier multi-state operators (MSOs) in America.

With few cannabis assets and beginning operations several years after its closest competitors, Red White & Bloom Brands has come a long way. From its investment in PharmaCo—which was granted Step 1 prequalification by the Medical Marihuana Licensing Board of the State of Michigan in October of 2018—and expanding outward, RWB has built up an impressive treasure trove of revenue producing assets which include: 8 operating dispensaries in Michigan (with room for another 10 openings), acquisition of a leading vape brand, a footprint in 7 states nationally and a partnership agreement with High Times. All of this has been accomplished in little over 2 years since Tidal and MichiCann began the reverse takeover process in February 2019.

Naturally, such rapid expansion is bringing along impressive revenue growth long with it.

With just $1.5 million of revenues reported in its inaugural quarterly financial report (Q2 2020), that total jumped to $6.1 million in Q3 and approximately $48 million on a pro forma basis. With closure on the acquisition of Platinum Vape occurring in Q3, investors can expect another big jump in consolidated top line revenue in Q4.

As of the fourth quarter of 2020, Platinum Vape had annualized revenues of more than C$102 million and generated EBITDA 25%-30% before expected merger synergies kick in. It’s also the dominant vape brand in Michigan, generating US$23.5 million (representing 28% market share) in February in both the medical and adult use markets.

While RWB is excited to consolidate Platinum Vape, it’s the consortium of assets coming together that is getting Brad Rogers excited. When asked about the opportunity that potential SAFE Banking passage and overall market maturity presents for Red White & Bloom Brands, a visibly energetic Rogers states:

If you look at what we got there (Illinois/Florida transactions including cannabis licenses closing shortly) as embryonic if you will, but it’s doing way more revenue than what we had originally reported—it was just a fact of how we were able to report it and how that deal was structured. So once we’re able to report those earnings, man, I just can’t wait to get those other states on, report what’s going on in Michigan, spark up Illinois, spark up Florida, spark up Arizona and grow California. You know, we’re definitely going to meet our mandate of being a top player in this whole space…

According to the latest investor deck, RWB expects fiscal year 2021 revenue of between C$300-$450 million and EBITDA of between $70-$150 million.

Click on the embedded link for more of our exclusive interview with Red White & Bloom Brands CEO Brad Rogers, in his own words.

You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More