Red White & Bloom – Primed to ride America’s Green Wave under the leadership of a sector visionary
Brad Rogers is a familiar name to those investors who’ve already enjoyed success in the cannabis space.
As the co-founder of Mettrum Health, he helped to build one of the first commercially-scaled Canadian production facilities for medicinal cannabis.
It was an achievement that eventually led Mettrum to be sold to cannabis giant Canopy Growth for a massive $430 million—the largest-ever acquisition in the cannabis market at the time.
Indeed, Rogers is known for leading numerous companies from pre-licensing to public listing in the lifestyle and healthcare space.
And he has a proven track record of attracting funding both publicly and privately.
In fact, following his time at Mettrum, he actually went on to serve as the president of CannTrust, one of Canada’s leading cannabis producers.
During his time as president, the company’s stock rose by a massive 450%.
But now, as Chairman and CEO of Red White & Bloom Brands he’s set to unleash the ‘Rogers Effect’ on a whole new scale.
In short, Red White & Bloom aims to become one of the top three multi-state cannabis operators in the whole of America.
And it’s already off to a flying start.
Key acquisitions and agreements paving the way
Since starting out in 2018, Rogers and the expert team at Red White & Bloom have already hit the ground running.
They’ve already made some key acquisitions and put in place important licensing agreements that clearly support their bold intentions.
One such acquisition, made ahead of schedule in September 2020, was that of Platinum Vape.
Already selling in over 750 retailers across Michigan, California, and Oklahoma, Platinum Vape offers a full range of premium-quality cannabis products, such as vape cartridges, confectionery, and pre-rolls.
Indeed, as well as giving Red White & Bloom an additional and immediate route to market, the smart acquisition of Platinum Vape also opens up an already accelerating revenue stream.
The annualized run rate for the company, as of November last year, was close to $90 million…
And, in just one week in January this year, sales exceeded $2.8 million.
$2.8 million in one week alone.
Red White & Bloom will soon put out its first quarterly figures to include a full period of sales from Platinum Vape.
Given the impact Platinum is clearly making on the US cannabis market, the revenues are on track to be much higher than the $6.1 million it posted in the three months to 30 September 2020.
Moving forward, the positive impact is only likely to escalate, too.
Over the near-term, Platinum plans to add Arizona, Florida, and Illinois to the list of states in which its products are sold.
But the Platinum acquisition isn’t the only big move Red White & Bloom has made recently…
It’s also signed what could be another transformative deal with the iconic US brand, High Times.
High Times is perhaps the world’s most recognizable cannabis name, having been present in the industry for more than 45 years. Unlike so many new starters, High Times has real history. That’s impossible to recreate.
And it represents another super-smart move from Red White & Bloom, which aims to leverage the recognizable and trusted brand by using it on its dispensaries and products to reach a much wider audience than much of its competitors could ever hope to.
But more than that, both the acquisition of Platinum Vape and the branding agreement with High Times play perfectly into a strategic, state-by-state approach that Rogers and the team at Red White & Bloom is adopting.
It’s a strategic plan that could soon see the company’s valuation take off.
And it’s why smart investors should be quick to move on this.
A strategic state-by-state approach
Indeed, make no mistake about it…
State-by-state, the US is turning Green.
And, as it does, Red White & Bloom is poised to take full advantage.
Yet, unlike many, the company is not rushing to spread itself too thin.
Instead, it’s focusing on three core states while, at the same time, laying the groundwork for future growth in other key states.
The three jurisdictions it’s taking by force right now are Illinois, Florida, and Michigan – all three of which have booming cannabis markets forecast to become even bigger.
For example, in Illinois, after just nine short months of legalization, the market is already estimated to be worth around $1.25 billion.
To take advantage of this, Red White & Bloom has already established a sizeable local foothold through two targeted acquisitions that, once combined, will provide a huge source of company revenue.
Within the state, it already owns one of the largest indoor premium hemp facilities in the world.
Now, it is waiting for the green light to add cannabis cultivation to generate $250 million-a-year conservatively in revenues once approved.
Not bad at all for a company with a current market valuation of just under C$300 million at writing.
Meanwhile, in Florida, which itself is a rapidly growing market, the firm has made another clever acquisition that will give it immediate market access as well as even greater production capabilities.
Indeed, by acquiring Acreage Florida, Red White & Bloom has taken control of over 15 acres of land that contain a 113,546 square foot facility for cultivation in the sunshine state.
It’s the perfect foundation for a jurisdiction-wide roll-out of Platinum Vapes and High Times-branded products and dispensaries.
And then there’s Michigan.
In 2020, the state was home to the fastest-growing cannabis market in America…
And, right now, Red White & Bloom is the largest MSO investor in the area.
Red White & Bloom has invested close to $75 million over the last two years into a private company that holds numerous cannabis licenses across the state, including cultivation, retail and manufacturing.
Red White & Bloom’s acquisition of the investee is now awaiting regulatory approval, and if it goes through, it could be transformational for the company.
You see, as of June 2020, the investee had generated US$70 million in trailing revenues over the previous 12 months.
Red White & Bloom has been waiting to be able to report these revenues in its own financials until after it gets regulatory approval.
It is at this point that the investment in Michigan is likely to be truly understood by the market.
What’s more, closing the acquisition will cost the firm no additional cash – it has already advanced the total value of the deal.
Where the company is concerned, there couldn’t be a better time to invest.
As CEO Rogers himself points out:
“AFTER TWO YEARS OF PAINSTAKING WORK BY OUR TALENTED TEAM, WE NOW GET TO ENJOY THE FRUITS OF OUR LABOUR. MANY DEALS, JUDICIOUSLY PURCHASED AND DILIGENTLY STRUCTURED ARE ALL NOW COMING TOGETHER…TO CREATE THE MOST EXCITING TIMES IN THE HISTORY OF THE COMPANY.”
But it’s not just the right time where the company is concerned…
As we speak, the whole of the US cannabis industry is set to explode.
DOWNLOAD OUR EXCLUSIVE REPORT to learn how cannabis visionary Brad Rogers plans to dominate US cannabis with Red White & Bloom
Just in time to ride the next ‘green wave’
With President Biden in the White House and the democrats taking control of both Houses of Congress…
The road to legalization in the US just got a whole lot smoother.
Of course, the case for legalization was already looking pretty strong before, with legal US cannabis market sales reaching more than $18 billion in 2020 – 71% more than the previous year.
But now, with Vice-President Kamala Harris heading up the MORE Act, which pledges “no incrementalism” when it comes to legalizing cannabis, things are really expected to take off.
Frankly, the numbers here can start to become a little mind-boggling, with the state licensed cannabis market in the US alone expected to reach more than $47.3 billion by as soon as 2024.
It’s such a big opportunity that it is almost difficult to get your head around.
But one thing is very clear…
When you compare the current value of Red White & Bloom to its peers, it is very obviously undervalued.
Just take a look at the chart below – which shows that while Red White & Bloom’s peers were trading at an average of 14.9X 2021 EBIDTA in December, the firm was trading at just 3.4X 2021 EBITDA:
With revenue reports yet to come in since the acquisition of Platinum Vape…
The deals in Illinois and Florida on the verge of being finalized, at which point they can transform the company’s bottom line…
And the new High Times brand only just being rolled out into Michigan…
There are all manner of catalysts in play right now that could trigger the next major move up to correct this significant discount. The tailwind here is huge.
Which is why we urge you not to hesitate here.
As we’ve seen happen time and time again, we expect those who move quick with Red White & Bloom to soon see the ‘Rogers Effect’ in full force.
To read about how Red White & Bloom plans to dominate US cannabis state-by-state with leading brands and partners, READ OUR EXCLUSIVE REPORT
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