- $58.5 million in Adjusted Sales for first six months of 2021
- The company also reported repaying approximately $18 million of debt and restructuring over $20 million into a long-term debt
- Q2 also marked RWB’s acquisition of Acreage Florida, as well as an operational 45,000 SF greenhouse within the state, which it projects, will begin harvesting in Q4 2021
- RWB’s CEO expressed his optimism about the company’s performance in the Q3 and the second half of the year, given the strides made and the momentum realized in Q2
On August 30, Red White & Bloom Brands (CSE: RWB) (OTCQX: RWBYF)
released its financial results and subsequent events report for the second quarter of the 2021 fiscal year (“Q2, 2021”). While making the announcement, Brad Rogers, the Chairman and Chief Executive Officer (“CEO”) of the company, expressed his optimism about the company’s performance in Q3 and the second half of the year, owing to the strides made by the company, and the momentum realized in Q2.
Key takeaways from the announcement included the company’s Q2 13% increase in revenue over the first quarter of the year. It is noted that there were significant raw material inventory purchases over that period, in support of growth for Q3 and anticipation of new branded product launches later down the line. Adjusted sales for the first six months of the 2021 fiscal year totaled $58.5 million, with revenue for Q2 totaling $13.3 million, up from $11.8 million in Q1 2021. The gross margin (excluding adjustments for biological assets) was $9.5 million for Q2 2021 (https://cnw.fm/KENwd
In addition to a growth in revenue, RWB also received the Florida Department of Health, Office of Medical Marijuana Use approval and closed the acquisition of Acreage Florida. Acreage Florida is a company that is licensed to operate medical marijuana dispensaries, a processing facility as well as a cultivation facility within the state of Florida. The transaction would see RWB possess a 114,000 SF facility for cultivation and a 4,000 SF freestanding administrative office building located on 15 acres in Sanderson, Florida.
“In Florida, after closing the acquisition at the end of April, we have made strategic investments that are allowing us to quickly ramp up capacity as well as complete construction for new store openings before the end of 2021,” noted Mr. Rogers.
Q2 2021 also saw RWB secure 20 double wide fully enclosed cultivation pods that will offer approximately 19,000 square feet of turn-key cultivation space. These pods will also provide 14,400 SF of canopy capable of producing over 7,000lbs of flower every year.
RWB also announced having completed the more comprehensive portion of Michigan’s two-step application process for medical marijuana licensing through its wholly-owned operating subsidiary, RWB Michigan, LLC. Additionally, by the close of Q2 2021, RWB had completed over $52 million in financing transactions, retiring at least $7.7 million in debt.
The company also closed the acquisition of an operational 45,000 SF greenhouse located on 4.7 acres of land in Apopka, Florida. It projects that the facility will be ready for harvest by Q4 2021. RWB also exercised its option to extend the maturity of its Credit Facility to January 2022, with an option to further extend it to July 2022. In total, over the Q2 2021 period, approximately $10 million of debt was retired, with additional agreements to restructure $20 million of debt, expected to close over the first week of September 2021, and with the maturity date moved to January 2023.
RWB is a first-mover, an industry leader in American cannabis. It is driven by becoming the prominent and most recognizable cannabis company in the United States (“US”). It is proud of its ethical, manufacturing, branding, educational and employment standards, the highest in the industry. Since its inception, the company has positioned itself as one of the top three multi-state operators in cannabis and hemp-derived product lines within the US market. Headquartered in Vancouver, RWB has made significant investments within the US and has pending acquisitions in Michigan, and Massachusetts, with plans to enter California at scale. The company plans to create the first-ever standardized cannabis facility in the US to ensure superior quality.
For its operations in Michigan, RWB uses a 3rd party licensee. The licensing agreement specifies that the revenue the company can recognize is product sales, less direct expenses, and inventory purchases. Consequently, RWB’s revenue in Michigan is always understated. Still, the company has managed to post impressive results, which make its future look promising.
Q2 2021 was remarkable for RWB. Fiscal performance was impressive, and the company also made some strategic decisions and investments that guarantee its growth in performance as time progresses. The company is confident and optimistic about its performance in Q3 as well as the second half of 2021, all stemming from the progress and the momentum achieved from Q2.
For more information, visit the company’s website at www.RedWhiteBloom.com
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