Multistate cannabis operator Red White & Bloom Brands (RWB) announced July 22 that it had signed a binding letter of intent to acquire Platinum Vape, a producer of vape cartridges, edibles and flower that is spearheaded by father-and-son team George and Cody Sadler.
Previously focused on the Michigan, Illinois, Massachusetts and Florida cannabis markets, RWB will enter California’s market through its first acquisition since going public earlier this year.
Platinum sells its products at more than 700 retailers throughout Michigan, California and Oklahoma, and co-founder and President George Sadler said the company has been building a relationship with RWB for the past few years.
“It was maybe three years ago when [RWB] talked to us about doing a purchase and at that time, it just didn’t work out—[it] just didn’t seem feasible,” Sadler told Cannabis Business Times and Cannabis Dispensary. “This all came along kind of rapidly, but our relationship has been there for quite some time.”
For Sadler and his son, Cody, Platinum Vape has been their baby for the past nine years, since the company’s inception, and both Sadler and RWB CEO Brad Rogers said they view the acquisition as more of a partnership between the two companies.
“It’s not something we want to do in a walkaway deal,” Sadler said. “It was more incorporating us with what their future plans are and growing. Having that freedom for Cody and I has been paramount.”
The acquisition will not change the structure of Platinum’s business, he added, and Rogers agreed that the Platinum team will be critical in the future success of both companies.
“When you buy Jack Daniels, you want Jack to come with it,” Rogers said. “I wouldn’t even look at it as a buy, really. It’s a partnership because these guys aren’t going anywhere. … This