Toronto-based multistate marijuana company Red White & Bloom Brands secured a $60 million loan, then signed a definitive agreement to acquire an Illinois medical and recreational cultivation facility for $32.5 million.
According to a news release, Red White & Bloom (RWB)’s purchase of Ontario special purpose vehicle Cannabis Capital Partners includes:
- The rights to a 23,572-foot cultivation and manufacturing facility in Shelbyville, Illinois.
- The operation’s associated inventory.
- Real estate assets that include 2 acres of land.
The cultivation facility was one of the 21 original “super licenses” issued by Illinois regulators, the release noted.
The “super license” allows for 220,000 square feet of recreational marijuana cultivation canopy as well as processing and manufacturing of extract-based products.
RWB said it will pay half the $32.5 million purchase price in cash from the $60 million loan.
The remainder of the loan, which bears a 7% interest rate, will be used for working capital and debt payments over three years.
The company projects that the 220,000-square-foot facility would generate 100,000 pounds of flower a year at 50 grams per foot and 4.2 harvests per year.
RWB said in a release that it plans to combine the cultivation licenses with its 3.6 million-square-foot cultivation facility in Granville, Illinois.
The company has been growing CBD and “novel cannabinoid” flower in Granville for more than a year. The THC side of the operation is nearly ready to begin production.
“I think for us to enter a state that has a limited license program and has quickly established itself as one of the largest markets by revenue in the U.S. is a watershed moment for our shareholders,” RWB Chair and CEO Brad Rogers said.
Along with the grow operations, RWB also plans to launch its Platinum Vape brand and well as extracts and infused products.
RWB acquired California-based Platinum Vape last July in a deal that carries a potential price tag of up to $60 million.