- Red White & Bloom Brands is a cannabis multi-state operator building on opportunities in Michigan, Florida, Illinois, California, Arizona, Oklahoma and Massachusetts to create a synergistic portfolio throughout North America
- RWB is also building its hemp-based CBD products retail throughout the United States and into international markets
- The company has released its third quarter financial report on revenue growth, operational development and progress in finalizing additional agreements
- The report notes revenues grew from $6.1 million to $11.8 million year-over-year, largely as the result of its acquisition of its premium Platinum Vape
- The company anticipated having 30 grow pods in place at its newly acquired manufacturing facility in Florida by Dec. 1, with expected revenue generation of $50.8 million during the facility’s first full year
Cannabis brand builder Red White & Bloom Brands (CSE: RWB) (OTCQX: RWBYF), a multi-state operator aiming to become one of the top three in the United States’ cannabis industry, is riding the popularity of its trademarked Platinum Vape to remarkable revenue growth, recording a 93 percent increase year-over-year in its just-released third quarter financial report.
The financial results note that the majority of the company’s revenue comes from sales of cannabis finished products through third party wholesaling to retailers, delivering quarterly revenues of $11.8 million and EBITDA of $5.9 million that reverses an EBITDA loss of $5.8 million in Q3 2020 for a gain of $11.9 million.
“In the third quarter, we made excellent progress in laying additional building blocks in our core operating states of Florida, Michigan, and California to become more vertically integrated where it will be most profitable,” Red White & Bloom Chairman and CEO Brad Rogers stated in announcing the results (https://cnw.fm/xTQBy). “This will help drive increased revenue and margins for the company.”
Platinum Vape was named the No. 1 brand for vape cartridges in Michigan by analysts at The Arcview Group & Headset in conjunction with Greentank vape manufacturing, according to the report. In California, Red White & Bloom transitioned management oversight of Platinum Vape brand to its own team after acquiring the brand during the third quarter, while in Michigan where the company uses a third-party manufacturer for Platinum Vape sales RWB took over operational control.
RWB hosted a conference call about the earnings report with investors on Nov. 30. A recording of the call was placed on RWB’s Investor Relations website at https://cnw.fm/CCPjf and a replay of the call is also available for 90 days by dialing 877-660-6853 or 201-612-7415 then entering access ID:13725118.
The company is mostly focused on cannabis industry development within the largest U.S. markets for it, namely Florida, Michigan, Illinois, Massachusetts, Arizona and California. For its hemp-based CBD products, RWB expects the scope of its operations to take in foreign markets as well as the United States.
In Florida, RWB has been transitioning 30 grow pods to its recently acquired 45,000-square-foot greenhouse in Orange County, with expectations that the grow pods would be fully planted by Dec. 1 and capable of producing $50.8 million in revenue during its first full year.
“We will update shareholders on our progress shortly and are eager to share how our work in Florida and other areas is coming to fruition in Q1 2022 quarterly results,” Rogers stated.
Among other developments shared in the third quarter report, RWB noted that it anticipates leveraging cost sharing and other economies of scale to further improve its profit margin once it closes the pending acquisition of a Michigan investee, which will allow the company to be vertically integrated.
“RWB is being very strategic in pursuing vertical integration only when there is value to be added. We aim to be asset light and brand rich,” CFO Chris Ecken stated. “Our strategy is to support the brands in the most profitable way. We have been putting the teams in place to support this strategy in each state where we operate.”
For more information, visit the company’s website at www.RedWhiteBloom.com.
NOTE TO INVESTORS: The latest news and updates relating to RWBYF are available in the company’s newsroom at https://cnw.fm/RWBYF
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