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Red White & Bloom Brands Inc. (CSE: RWB) (OTCQX: RWBYF) Commences Installation of 30 Growing Pods, Produces First Batch of Chocolates at New Sanderson Production Facility

  • Red White & Bloom has officially entered Phase 2 of an aggressive three-phase expansion plan in Florida
  • Phase 2 involves the installation and commissioning of 30 customized, self-contained growing pods
  • RWB recently received OMMU approval for the first five pods that it subsequently installed and commissioned
  • The company, through its Red White & Bloom Florida LLC subsidiary, produced the first batch of chocolates from the new Sanderson production facility, making substantial progress since launching the greenhouse facility in Apopka in late September

Following the early October completion of phase one of a three-phase development strategy that captures Red White & Bloom Brands’ (CSE: RWB) (OTCQX: RWBYF) expansion plan in Florida, the company has officially entered the second phase.

This announcement follows the receipt of an Office of Medical Marijuana Use (“OMMU”) approval on October 22 that sanctioned the installation, commissioning, and loading of five of 30 planned modular grow pods. With the five approved pods already growing plants, RWB, through its subsidiary Red White & Bloom Florida LLC (“RWBFL”), is fast-tracking the remaining 25 pods with the expectation that they will be operational no later than the first of December.

Combined, the 30 16’ by 40’ customized, self-contained pods will provide about 19,000 square feet of operating space. Each pod will be capable of producing 63 pounds of sellable product per harvest, while collectively, they are expected to produce 10,000 pounds of high-quality flower annually. RWB anticipates that the annual yield will generate $30 million in additional revenue.

“The grow pods provide us with speed to market capabilities, which are needed for RWBFL to meet and exceed expectations for generating profitable revenue early in 2022,” commented Jim Frazier, GM of RWB Florida.

According to Brad Rogers, Red White & Bloom CEO, the RWBFL team has been on time, on target, and under budget in executing each step of the development strategy for the two cultivation centers in Apopka and Sanderson.

“Coupled with our cultivation and processing in Sanderson, the additional product [from the pods] will ensure Red White & Bloom has the needed inventory to fulfill inventory requirements at our HT Medical Cannabis dispensary in Springhill and for the next three dispensaries opening in the first quarter of 2022. The locations of the three dispensaries are St. Petersburg, Daytona, and Miami Beach,” Rogers continued.

In addition to the activation of the five pods, RWB announced its subsidiary had achieved another milestone with the production of the first batch of chocolates from its new Sanderson production facility. Announced on September 9, the facility was built out to GMP specifications to capitalize on Florida’s burgeoning cannabis derivative market, which is expected to reach $2 billion in annual sales by 2025 from a projected $1.3 billion in 2021 (https://cnw.fm/2o7Si).

RWB also reported that its subsidiary had made significant progress since launching the 45,000 square foot greenhouse in Apopka in late September (https://cnw.fm/2RXbp). Half of the greenhouse is utilized for auto flower production for biomass to support RWBFL’s extraction operation in the future. The remaining half is reserved for mother plants, clones, and vegetative operations for RWB’s proprietary genetic strains.

Moreover, RWBFL has hired highly talented cultivation specialists to enable aggressive growth and fulfill a Q4 harvest schedule. By yearend, the subsidiary expects to have expanded its current team of 15 to 25 and then to 50 by the end of Q1 2021. Prospective employees can view job openings via https://cnw.fm/fuPI8.

The three-phased development strategy aligns perfectly with Rogers’ summary of the company’s focus for the remainder of 2021 and throughout 2022 (https://cnw.fm/8ya8p). “The company will focus on the continued growth of our top-line revenue and bottom-line results through expansion of our house of brands that continue to gain momentum, fortification of our vertically integrated businesses, and the synergies from our M&A success,” stated Rogers.

Notably, Phase 3, which is on schedule, will focus on increasing the cultivation capacity in Sanderson as well as building out the remaining space in Apopka to enable RWBFL to generate profitable revenue by maximizing the two facilities.

For more information, visit the company’s website at www.RedWhiteBloom.com.

NOTE TO INVESTORS: The latest news and updates relating to RWBYF are available in the company’s newsroom at https://cnw.fm/RWBYF

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