Gowling WLG advised Red White & Bloom Brands Inc. (CSE: RWB) (“RWB”) on its strategic transaction with HEAL Botanicals Pharma Inc., establishing RWB’s presence in the European medical cannabis market.

Through the transaction, RWB acquired a controlling interest in HEAL Europe Holdings Corp. (“HEH”), providing RWB with an integrated European medical cannabis platform with operations and investments in Germany, the United Kingdom and other European markets. The platform includes interests in the Grünhorn group of companies in Germany and Leva HEAL Limited and Zerenia Clinics Limited in the United Kingdom.

As part of the transaction, RWB also committed to provide HEH with a senior secured credit facility of up to C$25 million, of which C$18.7 million had been advanced as of closing. The facility bears interest at a fixed rate of 12 per cent per annum and has a three-year term, maturing on September 10, 2029. It is secured against the assets of HEH and supported by guarantees and/or security from relevant operating subsidiaries.

The transaction represents a significant step in RWB’s international growth strategy, providing the company with exposure to established European businesses spanning pharmacy operations, pharmaceutical distribution, medical cannabis brands, patient access, fulfillment and logistics.

The Gowling WLG team advising RWB was led by Jason Saltzman, with Michael Shafarenko (Capital Markets and Public M&A) and Yetunde Amadou (Lending).