Red White & Bloom and Aleafia Health Execute Binding Letter Agreement for Business Combination
TORONTO — Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF) (“RWB” or the “Company”) and Aleafia Health Inc. (TSX: AH and OTCQB: ALEAF) (“Aleafia”) are pleased to announce that the Company and Aleafia have entered into a binding letter agreement on June 6, 2023 (the “Letter Agreement”) whereby the Company has agreed to acquire Aleafia and its subsidiaries in a business combination transaction (the “Proposed Transaction”). Under the terms of the Letter Agreement, each outstanding common share in the capital of Aleafia (each, an “Aleafia Share”) will be exchanged for 0.35 of a common share in the capital of the Company (each, an “RWB Share”), subject to customary adjustment (the “Exchange Ratio”). Upon the completion of the Proposed Transaction, existing RWB shareholders are expected to own approximately 76% of the Combined Company resulting from the Proposed Transaction (the “Combined Company”) and Aleafia shareholders are expected to own approximatel...