Red White & Bloom Brands' (RWB.CN) unit Emblem Cannabis Corporation, successfully closed the previously announced purchase of Ayurcann, it said on Monday.
The purchase of Ayurcann by Emblem was made in connection with the insolvency proceedings of Ayurcann and its parent, Ayurcann Holdings Corp. under the Companies' Creditors Arrangement Act.
"We believe this transaction delivers immediate value through increased revenue and EBITDA, while also creating a powerful foundation for future growth," said Red White & Bloom Brands President Colby De Zen. "As we continue to expand our footprint across North America and other legal cannabis markets, we see significant opportunities to leverage the strength of the Ayurcann brands across a much broader platform."
The acquisition adds a portfolio of established consumer brands that Red White & Bloom believes can be expanded beyond their current Canadian footprint, it said. Leveraging the company's existing operations, distribution channels and strategic relationships, the company said its management intends to pursue opportunities to introduce the Fuego, Xplor and Happy & Stoned brands into additional markets where cannabis products may be legally produced, distributed and sold.
Shares of the company closed unchanged at $0.025 on Friday on the Canadian Securities Exchange.