It’s been a busy and productive last few months for the cannabis industry’s only true super-state operator. And as reported by Stockhouse back in August, this Company continues to make big waves in some of North America’s biggest markets.
Cannabis company Red White & Bloom Brands Inc. (RWB) (CSE.RWB, OTC:TDRYD, Forum) went public on the CSE in June 2020 and has struck several deals since then, including acquiring licensing rights to the iconic High Times brand in Michigan, Illinois, and Florida, in June.
A month later, RWB exercised out an option to acquire Pharma Co – a deal which would give the Company ten dispensaries in Michigan and eight more in various stages of development, as well multiple grow facilities.
Then last month, Red White & Bloom closed the acquisition of the Platinum Vape Group of California-based companies, whose products are sold at more 700 retailers in Michigan, California, and Oklahoma. When combined with RWB’s 3.6 million square foot Illinois greenhouse that’s licensed to grow hemp, you have a healthy set of assets.
In this lively and informative podcast, Stockhouse Media’s Dave Jackson was joined by Red White and Bloom’s Chairman and CEO Brad Rogers to talk all things Red White & Bloom.
SH: First off, let’s talk about the difference between super-state operations and multi-state operations. What’s the distinction and how does being ‘SUPER’ play into your expansion plans?
BR: Well, super is better than multi. I would think just because of what we saw was you know, it was a land grab across multiple States and there was a premium on, in the markets for the most States with the most stakes in the ground. And really that made no sense to us in terms of how to run a business. And so, you know, critical mass is where it's at for us. And, you know, with critical mass, you become a, you become super, you know, I mean, that, that was we, we needed to redefine what the value there, what in the definition of superstate operator versus multi-state operator, and really set ourselves apart and say, you know what, we're going deep, wherever we go, we're going critical. Wherever we go. You know, one store in 19 States does not make for a great business because you have to manage them all.
You have to work with compliance your governance, et cetera. You know, one whim of a regulatory framework change in any state can really put you out of business if you're not on top of it. And so where we wanted to be was really owning a state and really owning the business and, and being able to help shape that business within that state that we're in and our beachhead was Michigan. And so we started there and went critical mass. And so that was one of the starting of what we saw is really redefining MSO into SSL superstate operator. And then of course, as you, as you succinctly said, we went into Illinois with a real strategy there with respect to seeing you know, the hemp bill came through and now, you know, CBD is now a national potential for the United States.
And we started there because we were a little bit late to the game in the, in the Illinois market to get a license there for THC, however, we're actively pursuing one right now. And, and being very, very look looking like we're got some traction there as well. So I won't get ahead of myself there. But I think that that's effectively what we wanted to do and it's 3.6 million square feet. So a massive, massive operation. And you know, when that TAC license comes in a 200,000 square foot canopy, we'll do, you know, a very, very nice piece of business. We estimate somewhere around 200 plus million dollars of revenue just in that one facility with no stores and satiate that market and have the ability to do that with really no cap ex out because we've got the infrastructure already. So, you know, a very strategic play in a very critical mass way in Illinois. So we've got a very nice big chunk of business, as you said in Michig