- RWB recently reported its Q3 2021 financial results in which revenues grew 93% YOY
- The company is pursuing vertical integration in multiple states, including Florida, California, and Michigan
- In Florida, RWB has launched cultivation operations and a processing facility expected to provide additional inventory for its Springhill dispensary, as well as three new dispensaries set to be opened in Q1 2022
- According to RWB Chairman and CEO Brad Rogers, vertical integration will help drive increased revenue and margins for the company
In the third quarter of fiscal 2021, multistate cannabis operator and house of premium brands Red White & Bloom Brands (CSE: RWB) (OTCQX: RWBYF) made excellent progress that reflected in financials captured in a November 30 news release. The announcement, which highlighted the company’s 93% year-over-year revenue growth from $6.1 million in Q3 2020 to $11.8 million in the most recent quarter, also provided additional details on the RWB’s prospects and strategic plans, one of which is vertical integration (https://ibn.fm/6fiK5).
“In the third quarter, we made excellent progress in laying additional building blocks in our core operating states of Florida, Michigan, and California to become more vertically integrated where it will be most profitable,” commented RWB Chairman & CEO Brad Rogers as part of the announcement. “This will help drive increased revenue and margins for the company.”
In Florida, RWB’s operations include active cannabis cultivation sites, an operational processing facility, and a dispensary.
Through its Red White & Bloom Florida LLC (“RWBFL”) subsidiary, RWB commenced cultivation at its Apopka, Florida greenhouse site in late September, following the receipt of regulatory approval (https://ibn.fm/g8Svz). Later, in October, the company received OMMU approval of five of 30 growing pods, sanctioning the loading and growing of high-quality flower.
RWB also has a 113,000-square-foot indoor growing facility in Sanderson, Florida, that it intends to operationalize soon as part of a three-phase Florida expansion plan.
In terms of processing capabilities, RWBFL completed the build-out of a new production facility in Sanderson in early September to accommodate the fast-growing demand for edibles in the Florida market. And in early November, the company reported the production of the now-operational facility’s first batch of chocolates.
“Coupled with our cultivation and processing in Sanderson, the additional product [from the growing pods] will ensure Red White & Bloom has the needed inventory to fulfill inventory requirements at our HighTimes (“HT”) Medical Cannabis dispensary in Springhill and for the next three dispensaries opening in the first quarter of 2022. The locations of the three dispensaries are St. Petersburg, Daytona, and Miami Beach,” commented Rogers in a November 4 news release (https://ibn.fm/XWW4a).
In addition to its expanding retail footprint, RWB also holds exclusive HT naming rights for all retail dispensaries in Michigan, Illinois, and Florida (https://ibn.fm/b2Fan).
In Michigan, RWB expects to be vertically integrated upon closing a pending acquisition of an investee whose Michigan facilities include active and planned dispensaries, cultivation sites, and company-owned real estate holdings.
“RWB is being very strategic in pursuing vertical integration only when there is value to be added. We aim to be asset-light and brand-rich. Our strategy is to support the brands in the most profitable way,” commented RWB CFO Chris Ecken. “As RWB integrates vertically in multiple states, we anticipate that our margins will dramatically increase, enabling us to move toward profitability.”
For more information, visit the company’s website at www.RedWhiteBloom.com.
NOTE TO INVESTORS: The latest news and updates relating to RWBYF are available in the company’s newsroom at https://ibn.fm/RWBYF