Red White & Bloom Brands Inc. (OTCMKTS: RWBYF) jumped 6.52% after releasing Q4 and FY 2020 financial results and provided business updates.
RWB generated adjusted sales of $37.8 million
In the fourth quarter, the company reported adjusted sales were $37.8 million, including PV branded product sales in California and Michigan and MAG revenue. Revenue grew 158% in Q4 2020 to $15.7 million, and for the full year, revenue was $23.3 million. The increase in revenue was mainly due to the reporting of the first full quarter following Platinum Vape’s acquisition.
Gross profit for FY 2020 was 57% of revenue at $13.35, while net loss was $18.6 million compared to $12.5 million the previous year. The net loss increase was attributable to the impact of non-cash items such as depreciation and amortization and a one-off listing expense of $31.7 million and $8 million G&A provision, which was offset in part by $53.6 million revaluations of the call/put agreement with PharmaCo.
Red White & Bloom made acquisitions
During the quarter, the company closed Platinum Vape’s acquisition, which is licensed in California and has its products being offered in Oklahoma and Michigan. The company also closed the Mid-American Growers’ acquisition, the owner of the 3.6 million sq. ft. greenhouse in Illinois. RWB has since signed a definitive purchase agreement to acquire in of the only 21 cannabis licenses in the state for $45 million.
CEO Brad Rogers said, “We set out at the beginning of 2020 with a three-year plan for our success; our strategy was to establish a foundation for the overall company and identify the core states to operate in and a plan to scale in those states. In 2021 we look to expand through an asset light approach in other states, such as Arizona, and complete the integration of our M&A targets while gaining operational synergies from all we have accomplished over the last 18 months.”