Giant hemp grower to buy pot cultivation license in Illinois
Red White and Bloom Brands Inc. announced Thursday it has signed a definitive agreement to acquire the outstanding shares of Cannabis Capital Partners Inc., and with it rights to purchase a cannabis cultivation center in downstate Shelbyville, the company stated in a news release.
The 24,000-square-foot grow house to be purchased is run by Shelbyville County Community Services, a not-for-profit mental health group that employs people in rehabilitation.
Red White and Bloom, through its subsidiary MidAmerican Growers Inc., operates a 3.6 millionsquare-foot greenhouse in Granville, just west of Starved Rock State Park.
Company officials hope to get Illinois Department of Agriculture approval to move the small Shelbyville operation toitsmuchlarger greenhouse.
TheDepartment ofAgriculture said only that it had not received any request to approve such amove.
However, state law requires that cannabis growing licenses be geographically dispersed, one for each IllinoisStatePolice district. That would seem to suggest that a change in the law would be required to move the license. State and Shelbyville County Community Services officials did not immediately respond to requests for comment.
Red White and Bloom also stated that it would be able to launch its High Times brand cannabis and PlatinumVape brand in the state, while the Shelbyville facility would be better suited for a new, smaller craft cannabis growing license.
Red White and Bloom has been growing relatively nonpsychoactive CBD and hempflower at itsGranville greenhouse formore than a year. It said it would need minimal changes to convert to producing cannabis, extracts and infused products with THC, the primary component of marijuana that gets users high.
The deal to buy CCP is contingent upon certain milestones, including the approval, if sought, of the relocation of the license.
CCP, in turn, has entered into “definitive agreements” to acquire the Shelbyville license, the release stated, for $16.25 million in cash at closing plus $16.25 million in the form of a note.