Featured Investments , Spotlight

Red White & Bloom is an undervalued hot stock with growth potential in the MJ space

19 Jul 2021 | by: Patricia Miller

Health sector investing still has a long way to run. Check out this hot stock!

RED WHITE & BLOOM BRANDS CSE:RWB | OTC:RWBYF

In one shape or form, cannabis, aka MJ, has been celebrated on this planet for at least 2,500 years. Now, perhaps more than ever before, its popularity is soaring as it becomes normalized and integrated into the lives and communities of an emerging blend of cultures.

According to a Pew Research survey2 from April, over 90% of US adults think MJ should be legal.

No longer deemed a threat to social order, weed is now being touted as a savior to help people cope with many health issues and calm society’s ills. It’s part of the plant-based movement to clean living and mental health awareness. Among its many strengths is its ability to ease physical pain in long-term sufferers.

This newfound love of nature’s potent offering is leading to rising interest in MJ stocks and growth in stronger participants.

One such player disrupting the scene is Red White & Bloom Brands.

It’s an undervalued cannabis stock with a rapidly growing footprint, quality brands, and exciting acquisitions in the pipeline. Red White & Bloom must surely be one of the finest bargain stocks in the world of hot sector investing today.

A top multi-state operator

The company is striving to become one of the top three multi-state MJ operators in the US. And its mission is well underway.

Red White & Bloom has so much going for it and plenty of momentum helping it attain its goals.

Download our exclusive report on how Red White & Bloom could thrive in 2021 thanks to their newest acquisition

Investors can see the potential and are excited to be involved. Therefore, it’s quickly raising the capital needed to grow.

That’s because Red White & Bloom is setting its sights on key states where it can thrive.

And it has an ambitious and experienced management team running the show.

Red White & Bloom’s CEO, Brad Rogers, has an impressive and prosperous history operating in this industry. With specific experience in medicinal MJ breakthroughs.

And medical cannabinoid use is where commercial interest increasingly lies. The MORE act is a long-awaited federal law to legalize marijuana from the top. Since the Biden administration took office, it has been expected to pass, marking a monumental change in US drug history.

Even Amazon is voicing its support for the act. And has stopped marijuana testing in-house, adding weight to its endorsement of industry reform.

Money, money, money

Earlier this month, Red White & Bloom raised $44.5 million. $7.7 million will clear debt, while the remaining $36.8 million will help the group ramp its investment in Michigan.

It’s positioning in Florida, Illinois, California, Michigan, Oklahoma, and Arizona to be top of the game in the US legal cannabis and hemp sector.

It’s also considering the international sector for hemp-based CBD products.

Much-loved brands

Key to Red White & Bloom’s success is its array of recognizable brands with a large and loyal following. Competition is rife in the MJ space, but it’s the best-loved brands that will go the distance, and Red White & Bloom has four of them under its wing.

High TimesPlatinum VapeMid-American Growers, and Pura H&W are each strong labels in their own right. Together they create a powerhouse of complimentary cannabinoid offerings.

Using these brands to expand the Red White & Bloom business will amplify its exposure and accelerate its expansion plans. First up, it intends to rebrand several dispensaries to come under the highly respected and iconic High Times banner.

Explosive growth in Michigan

Red White & Bloom made a secret acquisition last year, securing lucrative assets in the state of Michigan. This is set to further strengthen the company’s future as a key player in this vital industry.

The identity of this acquisition has not yet been revealed for regulatory reasons.

What we do know is it’s a fully funded $90 million acquisition. And this company produced $70 million in trailing revenue over the prior 12 months. That’s impressive, but even more significant is this revenue is not yet being accounted for in Red White & Bloom’s valuation.

The MJ space is buzzing and many of Red White & Bloom’s competitors are valued at 10X their revenues. That tells us this mystery acquisition has significant potential to rocket Red White & Bloom’s valuation much higher.

And thankfully the mystery will soon be revealed because Red White & Bloom has finally completed pre-qualification in the state of Michigan and is simply awaiting finalization so it can charge on and open a further 10 stores in the state.

Quarterly and FY results exceed expectations

FY20 results were excellent, and this momentum continued as Red White & Bloom released its Q1 numbers last week.

Red White & Bloom achieved a positive adjusted EBITDA of $460,000 for Q1 2021. Meanwhile, adjusted sales for Q1 came in at $32.2 million, up 2.4% on Q4 2020. These results exclude Michigan, Florida, and Illinois, which are forthcoming.

This is a very exciting time to be investing in this up-and-coming cannabis stock as the business picks up pace and regulatory restrictions fall away.

Red White & Bloom’s aggressive acquisition spree aligning for success

RED WHITE & BLOOM BRANDS CSE:RWB | OTC:RWBYF

Science has long proven cannabis to be much less dangerous to health and society than legal equivalents like alcohol and tobacco. For decades it’s been wrongly classified among much more dangerous drugs giving it a bad name. But finally, the light is dawning on the powers that be, and change is well underway.

An acceptable asset

The US has now legalized medical marijuana in 16 states along with recreational use in many more, including California and New York. Furthermore, several countries are now looking at decriminalizing and make it socially acceptable.

Thus, MJ stocks are becoming more widely accepted as an appropriate asset to invest in.

This has been a difficult year for many companies, but Red White & Bloom management has been hard at work making acquisitions to strengthen the group’s future position.

Get our new exclusive report to discover why this could be the most exciting phase for investors in Red White & Bloom

It has world-leading brands on its books, the power of which cannot be overstated. Founded in 1974, High Times is the most iconic of all cannabis brands EVER. And Platinum brands is fast becoming a favorite of die-hard MJ users.

As 2021 continues, Red White & Bloom plans to expand its Michigan footprint, where it’s already becoming a significant player. It’s going to focus on its cultivation in Florida, followed by store openings. Additionally, it will continue THC growth in Illinois.

As if all this wasn’t enough, the company is continually on the lookout for strategic relationships and States offering a “brands only” strategy with minimal CapEx spend.

CEO, Brad Rogers recently said:

“SHAREHOLDERS SHOULD REALLY TAKE NOTE OF ALL THE GREAT DEALS WE’VE CONSUMMATED IN A VERY SHORT PERIOD OF TIME, WHILE PAYING A FRACTION FOR M&A THAT MANY OF OUR PEERS HAVE. THIS HARD WORK SHOULD BODE WELL FOR THE COMPANY AS OUR SYSTEMS, SOPS AND TEAM ARE NOW INTEGRATED TO GROW OUR TOP AND BOTTOM LINE INTO THE END OF THE YEAR.”

RED WHITE & BLOOM IS THE VERY DEFINITION OF A GAME-CHANGER.

To sum up, Red White & Bloom recently raised $44.5 million, so it has fully funded its acquisition and ready to explode its growth in the state of Michigan. The investee has already launched eight stores in Michigan and Red White & Bloom is set to launch ten more. While also accelerating the expansion of high-tech cultivation facilities to power its supply chain.

With the force of its already recognized and well-loved brands on board, it could potentially double the investee’s $70 million revenue in next to no time.

The Platinum Vapes brand has already generated over $150 million for the group. Its extensive selection of THC and CBD-based products covers vapes, darts, gummies, chocolates, and premium flowers.

Plus, Platinum Vapes is selling through 750 retailers in Michigan, California, and Oklahoma. And delivery-as-a-service platform, Budee, is helping Red White & Bloom extend that reach even further, with rollouts starting in Arizona, Florida, and Illinois too.

Therefore, the prospective upside for investors to tap into this extensive flow of money is vast!

This is a pivotal time in the history of the MJ industry. Like when prohibition ended in the 1930s, acceptance of cannabis is being propelled to the fore.

And this means money.

Investors are not too late to board the MJ train. There’s still plenty of steam ahead for company growth and wealth generation.

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