Red White & Bloom Secures USD $20 Million Dollar Supply Agreement with Critical 39 for Fiscal 2020
20 August 2020 - 12:02AM
Red White & Bloom Brands Inc. (CSE: RWB) (OTC: RWBYF) (“RWB” or
“Red White & Bloom”) is pleased to announce that they have
entered into a Growing and Sales Agreement (the “Offtake”) with 39
Industries, LLC operating as Critical 39 (“Critical 39”), a
Spokane, Washington based company focused on delivering premium
products throughout the US.
Anne Hyde, President of Mid-American Growers, a
wholly owned subsidiary of RWB, stated: "This Agreement with
Critical 39 reflects our ability to attract partners that recognize
our ability to provide indoor grown, ultra-premium products all
year round. The combination of the robust genetics provided by
Critical 39 and the skilled team at our Illinois facility will
allow us to deliver finished goods that will command a premium
price point and deliver on consumer demand for top shelf
products.”
Under terms of the agreement, Critical 39 has
already delivered 100,000 seeds to the 3.6 million square foot
facility in Granville, Illinois where they are being cultivated in
accordance with Good Agricultural Practices (“GAP”) and will be
processed into finished whole hemp flower. The initial crop is
expected to utilize a fraction of the facility’s capacity. The
offtake has provisions for the parties to extend the relationship
into the year 2022.
Lawrence Sowell, CEO of Critical 39, stated, “We
are proud to partner with RWB to fulfill whole flower demand from
our CPG distributors and end user consumers. This partnership
allows us to further monetize on our premium genetics with a
partner that has the greatest scale within the indoor premium hemp
and CBD market. We anticipate this is just the first step of an
expanding relationship.”
About Critical 39
Critical 39 is focused on the quality Cultivars
and derivatives thereof. Our innovative technology platform called
Groji, allows farmers, extractors, processors, CMOs, and CPG
distributors to track genetic cultivars through to the end
consumer, enhancing the transparency, safety, and brand story of
the product throughout the value chain. This increases sell-through
and ensures premium market price for products.
About Red White & Bloom Brands
Inc.
The Company is positioning itself to be one of
the top three multi-state cannabis operators active in the U.S.
legal cannabis and hemp sector. RWB is predominately focusing its
investments on the major US markets, including Michigan, Illinois,
Massachusetts, California, and Florida with respect to cannabis,
and the US and internationally for hemp-based CBD products.
For more information about Red White & Bloom
Brands Inc., please contact:
Brad Rogers, CEORed White &
Bloom(604) 687-2038
Tyler Troup, Managing
DirectorCircadian Group IRIR@RedWhiteBloom.com
Visit us on the web:
www.RedWhiteBloom.com
Follow us on social media:
Twitter: @rwbbrands
Facebook: @redwhitebloombrands
Instagram: @redwhitebloombrands
Cautionary Note Regarding
Forward-Looking Information and Statements
This news release contains "forward-looking
information" within the meaning of applicable securities laws.
Forward-looking information contained in this press release may be
identified by the use of words such as, "may", "would", "could",
"will", "likely", "expect", "anticipate", "believe, "intend",
"plan", "forecast", "project", "estimate", "outlook" and other
similar expressions, and includes statements with respect to the
ability of Critical 39 or RWB to perform under the agreement, the
manufacturing of the products, the shipping and delivery of the
products to customers in the United States and worldwide, and the
appropriate education and marketing efforts. Forward-looking
information is not a guarantee of future performance and is based
upon a number of estimates and assumptions of management in light
of management's experience and perception of trends, current
conditions and expected developments, as well as other factors
relevant in the circumstances, including assumptions in respect of
current and future market conditions, the current and future
regulatory environment; and the availability of licenses, approvals
and permits.
Although the Company believes that the
expectations and assumptions on which such forward-looking
information is based are reasonable, undue reliance should not be
placed on the forward-looking information because the Company can
give no assurance that they will prove to be correct. Actual
results and developments may differ materially from those
contemplated by these statements. Forward-looking information is
subject to a variety of risks and uncertainties that could cause
actual events or results to differ materially from those projected
in the forward-looking information. Such risks and uncertainties
include, but are not limited to current and future market
conditions, including the market price of the common shares of the
Company, the delay or failure to receive regulatory approvals, and
the risk factors set out in the Company's annual information form
dated August 7, 2020, filed with the Canadian securities regulators
and available under the Company's profile on SEDAR at
www.sedar.com.
The statements in this press release are made as
of the date of this release. The Company disclaims any intent or
obligation to update any forward-looking information, whether as a
result of new information, future events or results or otherwise,
other than as required by applicable securities laws.
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