Red White & Bloom Completes Platinum Vape Management Transition, Reduces US$12.5 Million of Liabilities

• Ramps up production of Platinum Vape products in Michigan to meet increased demand
• Strengthens balance sheet and redeems US$5 million in convertible debentures preventing the issuance of 8.8 million shares under the conversion feature

TORONTO, Oct. 18, 2021 (GLOBE NEWSWIRE) -- Red White & Bloom Brands Inc. (CSE: RWB and OTCQX: RWBYF) (“RWB” or the “Company”), a multi-state cannabis operator and house of premium brands, has completed an agreement for the transition of the management at its Platinum Vape, LLC (“Platinum Vape” or “PV”) acquisition and group of companies, settled all additional PV acquisition purchase price consideration, and redeemed US$5 million of convertible debentures that were previously convertible at US$0.57 per share.

“Platinum Vape experienced unprecedented growth over the last couple of years, and our acquisition of PV last year was a watershed event for RWB,” stated Brad Rogers, Red White & Bloom CEO and Chairman. “In addition to the current changes, we expect the further transition for management of the PV segment into a state-specific focus will allow for the expansion of the brand to each state in which RWB operates, while facilitating compliance for the regulatory and marketing nuances that are unique to each jurisdiction.”

Rogers added, “We continue to strengthen our balance sheet with the elimination of any additional consideration payable related to the acquisition of PV, including elimination of the US$7.5 million earn-out payment -- currently booked as a liability on the balance sheet, which could have been up to US$25 million if certain sales milestones were met -- and redemption of the US$5 million of convertible debentures.”

Increased Production

Strong demand in Michigan and California is outpacing supply of RWB’s award-winning PV brands. RWB, through its licensing agreement in Michigan, expects to see an increase in production to over 450,000 PV vape carts per month in November and has made expansion of the PV brand a top priority.

Management Additions

“We know how valuable each and every member of our company is to our continuing success,” Rogers noted. “In this time when so many companies are struggling to attract and retain their staff, we are proud to welcome our new team members, congratulate the existing RWB management team members who have taken on expanded roles, and thank all members of our team for their dedication and hard work as we continue to drive growth of both PV and overall results in each state.”