Red White & Bloom Brands Transitions to International Cannabis Company Through Closing of Aleafia Transaction

Combined company forecast to generate C$140 million in distribution and retail annualized revenues across North American and international sales channels

Expected to realize annualized operating cost and cash synergies in excess of C$12 million

RWB and Aleafia to service a combined 2,500+ retail locations in North America and select distributors in emerging international markets

TORONTO, Jan. 15, 2024 (GLOBE NEWSWIRE) -- Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF) (“RWB”) is pleased to announce that, in connection with the proceedings of Aleafia Health Inc. (“Aleafia Health”) and certain of its subsidiaries (collectively, the “Aleafia Group”) under the Companies’ Creditors Arrangement Act (the “CCAA Proceedings”), the parties have successfully closed the previously announced sale transaction (the “Transaction”), as further described below.

“We are excited to announce the successful closing of our acquisition of the Aleafia group of companies," stated Colby De Zen, President of RWB, adding, “This pivotal moment signifies a transformative phase for RWB's future, strengthening our presence in legal markets across North America and positioning us for global expansion. The integration of Aleafia’s brand portfolio and assets, combined with our acclaimed Platinum Vape brand, generates a robust footprint across recreational, medical, and international sales channels. Furthermore, we anticipate achieving annual synergies exceeding C$12 million between RWB and the Aleafia Purchased Entities while promoting revenue growth, margin contribution, and value for all shareholders.”

“The Aleafia acquisition aligns seamlessly with RWB’s goals of expanding its global footprint and fortifying its position in global cannabis markets,” stated Eddie Mattei, CFO of RWB. “The accretive nature of the Transaction has been evident to RWB management since the inception of the relationship with the Aleafia group of companies. With the financial support and ongoing commitment provided by RWB through the CCAA proceedings, Aleafia has already realized the benefit of multiple cost and cash improvements that will contribute to the combined company’s prospective financial performance. With the closing behind us, the combined, dedicated RWB and Aleafia teams are focused on delivering accessible synergies focused within sales, production, procurement, and marketing."