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The Transaction aligns with the Company’s mandate to focus on profitable growth opportunities
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TORONTO, July 14, 2026 (GLOBE NEWSWIRE) — Red White & Bloom Brands Inc.
(CSE: RWB) (the “Company” or “RWB”) is pleased to announce the successful closing of the previously disclosed transaction (the “Transaction”) involving its Florida operations with M&V Investment One LLC and its affiliates (collectively, “M&V”) and Royal Group Resources Ltd. (“RGR”).
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The Transaction represents a significant milestone for RWB, significantly strengthening the Company’s financial position through the expected elimination of more than $123 million of consolidated liabilities, the removal of substantial future funding obligations associated with the Florida operations, and the divestiture of a business that generated negative contributions to the Company’s consolidated financial performance. Following the Transaction, RWB will focus its capital and management resources on organic growth, brand licensing, and the acquisition of existing scaled businesses, while continuing the integration of the recently acquired Ayurcann business. All dollar amounts in this press release are expressed in Canadian dollars unless otherwise indicated.
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Management Commentary
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Colby De Zen, President of RWB, commented, “This transaction fundamentally reshapes RWB’s financial profile. By eliminating an estimated $123 million of liabilities from our balance sheet and removing ongoing funding requirements, we have materially strengthened the Company and significantly reduced our financial risk.”
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De Zen further added, “Our focus is now squarely on expanding our brand portfolio, further strengthened by the addition of the Fuego, XPLOR, and Happy & Stoned brands through the Ayurcann acquisition, as we continue executing on our long-term growth strategy. We believe we now have a stronger operating platform, improved financial flexibility, and a clear path towards sustained profitable growth and shareholder value.”
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Financial Impact1 — upon deconsolidation, RWB expects to:
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- Derecognize approximately $140.9 million of assets;
- Derecognize approximately $123.2 million of liabilities;
- Record an estimated non-cash gain of approximately $47.7 million; and
- Eliminate all future funding obligations relating to the Florida business, including obligations that historically gave rise to annual interest expense of approximately $10.0 million (FYE2025).
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The disclosures associated with the deconsolidation transaction, including the non-cash gain, remain subject to the completion of the Company’s 2026-Q2 condensed interim consolidated financial statements and the final vetting of the deconsolidation transaction by the Company’s auditors as part of its 2026-YE financial reporting.
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The Company will reflect the deconsolidation of RWB Florida, LLC and Red White & Bloom Florida Inc. (“RWB Florida”) in its condensed interim consolidated financial statements for the three and six months ended June 30, 2026, in accordance with IFRS 10, Consolidated Financial Statements. Management has determined that control of RWB Florida, within the meaning of IFRS 10, transferred to M&V effective April 1, 2026, being the date on which M&V assumed responsibility for directing the relevant activities and funding RWB Florida, and became exposed to the variable returns of the business. Legal closing was conditional upon receipt of The Office of Medical Marijuana Use (“OMMU”) approval, which has now been obtained. The Company does not retain a continuing obligation to fund RWB Florida’s operations, nor will it retain any equity interest in RWB Florida.
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