Proactive Investors - Red White & Bloom Brands Inc (CSE:RWB, OTCQX:RWBYF) finalized the $31.7 million acquisition of Canadian cannabis brand Aleafia Health Inc. (OTCQX:ALEAF), it said Monday.
The deal for Aleafia and its subsidiaries opens new avenues for RWB, the company said in a statement.
RWB said it hopes to leverage Aleafia's presence in recreational sales in Ontario, Alberta, British Columbia, Saskatchewan, and Manitoba, and medical distribution directly to patient subscribers nationwide.
Aleafia also exports internationally to Australia, Germany, and the United Kingdom.
“The integration of Aleafia’s brand portfolio and assets, combined with our acclaimed Platinum Vape brand, generates a robust footprint across recreational, medical, and international sales channels,” Colby De Zen, President of RWB said in a statement.
De Zen added that the company anticipates achieving annual synergies “exceeding” C$12 million.
The transaction, valued at $31,667,700, includes a release of all outstanding amounts and obligations under the Aleafia Senior Secured Loan Agreement and debtor-in-possession financing, along with cash consideration of up to $6,770,207. RWB anticipates the acquisition to be accretive on an EBITDA basis in fiscal 2024.