High times ahead for this money-spinning cannabis stock!
2020 turned out to be a mixed year for Cannabis stocks. The pandemic generally raised demand, but lockdowns hampered supply chains and Cannabis legalization efforts were paused in multiple US states. Times proved tough for many of these stocks, but by year’s end, the industry was back in the sun, setting 2021 off to a bright and hopeful start.
With the green revolution taking hold, investing in cannabis stocks may prove to be an insanely lucrative pastime. It’s a new dawn for the sector and a very exciting time for investors.
One such early-doors stock with exponential potential is Red White and Bloom Brands (CSE:RWB | OTC:RWBYF). Its management team built this impressive business in 2020 when cannabis stocks were being avoided like the plague.
Red White and Bloom excelled at deal making during a time when many were scared of expanding in the industry. But now there’s presidential support for the sector, medicinal cannabis is going mainstream and the good times roll on.
The company now has the world’s most iconic cannabis brand on its books, along with another major up and comer in the marijuana space.
Read on to discover why this is a money-spinning cannabis stock in the making.
A wealth of experience leads the way
Red White and Bloom has its finger on the pulse of much bigger things to come. CEO Brad Rogers has an exemplary history in M&A deals and bringing wealth to shareholders in the cannabis sector. Therefore, with a clear goal in sight, he’s in the perfect position to utilise his previous knowledge to execute an ambitious plan with precision. And along with his highly experienced team, they’re not afraid to play ball with the big boys.
Rogers has been through the trials of the cannabis space and knows the pitfalls to steer clear of. He’s also been able to hone a “secret weapon” of a roadmap to riches. That’s why any savvy investor in the marijuana space won’t want to miss the chance to jump aboard this weed wagon.
The one key factor leveraging the onslaught of future wealth is licensing. It can effectively appreciate a much higher flow-through from income to investor pockets, than simply owning a single own-label brand. And it’s with this in mind Red White and Bloom has taken aim at the best brand in the business.
For a deep dive into how Red White & Bloom could be one of the US cannabis boom’s biggest winners, DOWNLOAD OUR EXCLUSIVE REPORT
High Times ahead
High Times is undoubtedly the world’s most iconic cannabis brand. Sporting a 46-year history, it’s got nothing to prove but plenty to offer. Which is exactly why Red White and Bloom leapt at the chance to license the High Times brand.
The company is thrilled to be partnering with High Times because it allows Red White and Bloom to roll-out merchandise and products to key locations at high-speed.
Licensing this instantly recognisable brand gives Red White and Bloom a serious edge on its bigger rivals in the space. You can’t get much better than a 46-year-old brand in a relatively new space. This is the ultimate industry veteran with the knowledge, education and expertise honed by being utterly immersed in decades of cannabis culture.
It simply doesn’t get any bigger than High Times. And through this agreement Red White and Bloom can bring a range of exciting brand initiatives into its own budding house of brands.
With safety, efficacy, and quality at the forefront of its strategy, High Times has some fantastic product lines to bring under the Red White and Bloom umbrella.
This allows the company to leverage brand equity beyond anything newcomers to the scene could ever hope to achieve. It’s quite simply THE BIGGEST brand in the Cannabis space.
Partnering with such an instantly recognisable brand may well prove to be the defining moment of Red White and Bloom’s growth strategy.
But there’s so much more to look forward to and reasons to invest in this up-and-coming sector star.
Along with licensing High Times, Red White and Bloom bought 100% of Platinum Vape. This brand already had a strong foothold in Oklahoma and a significant deal in place in Arizona through a multi-state operator. Thus, helping Platinum Vape grow its footprint in a brief space of time. So much so that it’s now one of the biggest vape companies in America.
It has a great story behind the brand, which is something consumers love. What began as a father/son operation has grown through hard work, dedication, and a commitment to price, quality and convenience. These are all a brand needs to thrive in the competitive cannabis arena, and it’s right at the heart of Red White and Bloom’s core values and vision too.
Ultimately, this has led Platinum Vape to become a key player in its Michigan footprint, which is expected to grow rapidly through Red White and Bloom’s additional territories. In fact, Platinum Vape revenues have doubled since being taken over by Red White and Bloom.
An M&A game plan
There’s no doubt, Red White and Bloom has shareholder value in mind when letting loose with these two first class brands and their existing loyal following.
It’s giving the company a solid foundation and helping it kick off on the right foot. Ultimately targeting an immediate audience of two key demographics.
To see the sense in this strategy, let’s consider the alcohol arena.
Diageo is a highflyer in the world of alcoholic beverages because it carries so many top-quality brands under one roof. For instance, there’s Johnnie Walker, Smirnoff, and Baileys. Each of these appeals to a different demographic, but together they create a powerhouse of wealth for shareholders.
Or Brown-Forman with Jack Daniels, Herradura, and Chambord. Same idea, different brands.
Red White and Bloom understands the beauty and money-spinning potential of this game plan. That’s why it’s aiming to replicate it in the cannabis space.
The strong survive, but the courageous triumph
Red White and Bloom is operating with a simple game plan in mind. And that involves dominating with quality brands in a selection of key US states. Thereby bringing wealth to shareholders and health benefits to the masses.
There’s serious money to be made in the cannabis sector for companies, brands, and shareholders alike. The growth is crazy, and tapping into this opportunity provides a fantastic chance for early investors to reap the rewards.
While Red White and Bloom is still a relatively small company, it’s establishing a very strong foundational base with its strategic acquisitions thus far.
This has been further cemented in recent weeks after its purchase of medical marijuana licenses and a considerable site from Acreage Holdings (CSE: ACRG.A.U, ACRG.B.U, OTCQX: ACRDF, ACRHF) in Florida.
This fantastic acquisition extends its capabilities to cultivate and farm cannabis plants from seed in a 113,000 square foot storage facility. Thereby providing the company with plenty of room for all it wants to do. Furthermore, it sits on 15 acres of land.
The Sunshine State boasts the third largest legal cannabis revenues of any US jurisdiction. Sales in 2020 totalled more than $1.2 billion. So it’s with great anticipation Red White and Bloom gets moving in this state.
Cultivation capacity upgrade pledging $40 million per annum
The company is very excited with its latest purchase of 30 turnkey grow pods. These will allow it to make maximum use of every square foot of its new facility in Florida. The pods will allow for over 14,000 feet of immediate canopy. Thereby allowing Red White and Bloom to cultivate premium cannabis in its existing indoor facility.
The modular pod deployment will support its planned store openings with necessary yield. In fact, these 30 pods are projected to yield more than 7000 pounds of flower per year with a retail value exceeding US$40 million per annum.
READ OUR SPECIAL REPORT to hear how Red White & Bloom could be on the cusp of a major valuation re-rate in the market
Institutional funds begging to be unleashed on the cannabis sector
Now being that it’s 2021, let’s not forget the power shift in the US administration. Which is bringing with it a major push on widespread marijuana acceptance.
The Biden administration was vocal in its support of decriminalising cannabis during their campaign trail. It was arguably a big part of getting them elected. Therefore, hopes are high that this will lead to decriminalization at the federal level, which would be a game-changer for companies operating in the marijuana sector.
Best of all, it will open the floodgates to hundreds of billions of dollars of otherwise inaccessible funding. That’s because many funds and family offices can’t touch cannabis investments now for legal reasons. But they’re ready and waiting to pounce when the time comes.
Red White and Bloom recognises this. Its CEO Brad Rogers has been on the fundraising circuit for over a decade and is supremely well-connected in the space. Consequently, he’ll be ready to tap the sources for more big gains, allowing Red White and Bloom to continue growing ever bigger when that day comes.
But even better than this is the onslaught of pure-play cannabis ETFs that are bringing more money, recognition, and retail interest to the sector.
Exponential growth on a small budget
Despite its small size and limited team, the company has pulled off an incredible growth story. In fact, it’s grown exponentially with the money raised so far, particularly in comparison with its much larger peers.
It’s now operating in seven of the top 10 cannabis selling states in the US. These include California, Michigan, Massachusetts, Illinois, Arizona, Oklahoma and finally Florida.
It’s an exciting time to be involved in the marijuana stock space and operating a level up from the chaos and cowboys of the earlier cannabis days. The market has matured and the clientele with it.
The medicinal benefits of Mary Jane are now legitimately recognised, and the stoner stigma surrounding the drug is gradually being eradicated.
While THC is the element that gets you high, CBD has a lot of exceptional properties too. And this is proving to be equally popular, if not more so.
CBD creams are offering incredible relief for inflammatory conditions such as arthritis. Meanwhile, ingestibles are providing calming effects and aiding sleep. These are major side-markets that can become highly lucrative for those operating in them because there’s not a lot of quality competition.
Too tempting to ignore!
This is such an exciting time for the cannabis industry, it’s reminiscent of the end of prohibition in the 1930s. The potential for juicy gains looks far too tempting to ignore. For investors, Red White and Bloom could be a game-changer.
It’s not too late, this is still an early stage company with plenty of growth opportunity ahead. And it’s arguably undervalued in comparison to its peers.
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