After the market closed on Thursday, Red White & Bloom Brands Inc. (OTC: RWBYF) delivered its fourth quarter and full year 2020 financial results. Revenue for the fourth quarter of 2020 increased 158% to $15.7 million versus $6.1 million in the third quarter of 2020. RWB said the increase in revenue was primarily driven by the reporting of the first full quarter post-closing of the PV acquisition.
For the full year 2020, revenue increased to $23.3 million versus zero in 2019. The company also noted that adjusted sales for the year which excludes RWB Michigan, RWB Florida and RWB Illinois was approximately $37.8 million driven primarily by the Platinum Vape acquisition (the Company recognizes revenue from California and MAG in its entirety and only packaging revenue from Michigan).
RWB also reported that for the full year a net loss of $18.6 million vs $12.5 million in 2019. The company attributed the increase in net loss to the net effect of a number of non-cash items, including an increase of $15.3 million in depreciation and amortization, a one-time listing expense of $31.7 million, a $9.8 million provision in G&A for a possible contingent earn-out payable and an offset in part by a gain of $53.6 million on the revaluation of the company’s put/call agreement with PharmaCo.
Brad Rogers, CEO and Chairman said, “We set out at the beginning of 2020 with a three-year plan for our success; our strategy was to establish a foundation for the overall company and identify the core states to operate in and a plan to scale in those states. We have set the foundation for our core states including Michigan, Illinois, Florida and California. In 2021 we look to expand through an asset light approach in other states, such as Arizona, and complete the integration of our M&A targets while gaining operational synergies from all we have accomplished over the last 18 months. For the balance of 2021 and throughout 2022, the Company will focus on the continued growth of our topline 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.”
RWB said that once all of the acquisitions are closed, RWB, and RWB brands will be available in six of the top 10 states in the US, measured by cannabis revenue, with sales in 2020 exceeding $8.8 billion.