Toronto-based multistate cannabis company Red White & Bloom Brands (RWB) announced it signed a binding letter of intent to purchase California-based Platinum Vape for $35 million in cash and $25 million in further bonuses.
According to a news release, RWB will acquire all ownership interests in Platinum Vape for a total cash payment of $35 million, consisting of:
- $7 million in cash at closing.
- $13 million in cash payable within 120 days of the deal closing.
- A $15 million note that’s convertible after 12 months, payable on the third anniversary of the closing.
Additionally, the sellers of Platinum Vape, George and Cody Sadler, will be entitled to receive up to $25 million more on the first anniversary of closing, contingent on the company’s performance.
Platinum Vape sells cannabis products, including vape cartridges, edibles and pre-rolls to more than 700 retailers throughout California, Michigan and Oklahoma.
The company reports a current annualized revenue run rate in excess of $70 million.
The acquisition marks RWB’s entry into California, which is part of the company’s expansion plan and is the first for RWB since the business went public.