Marijuana multistate operator Red White & Bloom Brands plans to acquire financially troubled Canadian cannabis operator Aleafia Health in a share-exchange agreement.
The proposed deal comes less than two weeks after Aleafia announced it had launched a strategic review after breaching the terms of a secured loan.
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That loan has been assigned to Toronto-based Red White & Bloom (RWB), according to a Wednesday news release.
RWB will provide a $17.5 million credit facility to Aleafia as part of the deal and plans to sign a $30 million credit facility of its own.
Under the proposed share-exchange agreement, each Aleafia common share will be swapped for 0.35 RWB shares, giving Red White & Bloom shareholders roughly 76% of the combined company.
“The potential acquisition of Aleafia … provides a well-established distribution beachhead for RWB and its premium Platinum brand into the Canadian market, opens up the
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