Mr. Colby De Zen reports

RED WHITE & BLOOM REPORTS RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023

Red White & Bloom Brands Inc. has filed its condensed interim consolidated unaudited financial statements, management discussion and analysis, and associated certifications for its third quarter ended Sept. 30, 2023. The Q3 2023 filings may be accessed under the company's SEDAR+ profile.

2023-Q3 Financial Highlights

Revenues were $20.1 million for the quarter ended September 30, 2023 ("2023-Q3") and $69.1 million for the first nine months of fiscal 2023 ("2023-YTD").

Gross profit, before fair value adjustments, was $7.9 million for 2023-Q3, or 39% of 2023-Q3 revenues reflecting a $1.0 million increase compared to $6.9 million for the quarter ended June 30, 2023 ("2023-Q2") and a $1.8 million decrease compared to $9.7 million or 37.9% of revenues for the quarter ended September 30, 2022 ("2022-Q3").

Gross profit for 2023-YTD was $21.1 million or 31% of 2023-YTD revenues compared to gross profit of $20.8 million or 26% of 2022-YTD. revenues.

General and administrative expenses, inclusive of business transaction costs of $0.5 million, for 2023-Q3 were $6.4 million versus $7.3 million for 2023-Q2, representing a decrease of $0.9 million.

Operating expenses were $8.4 million for 2023-Q3, a decrease of $1.6 million compared to 2022-Q3 operating expenses of $10.0 million. Operating expenses were $29.1 million for 2023-YTD, a decrease of $5.5 million compared to 2022-YTD operating expenses of $34.6 million.

Adjusted EBITDA ( 2 ) for 2023-Q3 was $1.6 million, representing an increase of $1.3 million from 2023-Q2. Adjusted EBITDA for 2023-YTD was $2.3 million representing an increase of $0.6 million from 2022-YTD Adjusted EBITDA of $1.7 million.

Colby De Zen, the President of RWB, remarked, "Our company remains committed to expanding our premium Platinum-branded product line, with successful launches in Canada during Q3 and recent entry into the Ohio market in Q4. Our previously outlined investments in optimizing manufacturing facilities through value-added enhancements, driven by automation and procurement strategies, are now yielding labor and product cost efficiencies, as evidenced in our expanded reported gross profit for the quarter ended. Additionally, we are gearing up for the introduction of several new product offerings in Florida, anticipating full extraction capabilities. Upon approval, we foresee incremental revenue and gross margin growth through the launch of distillate-based products. Throughout the first nine months of 2023, our efforts have focused on cost reduction, eliminating low-margin products and non-core revenue streams, while placing a heightened emphasis on higher-margin products. With the impending completion of the Aleafia acquisition, RWB is poised to emerge as a leading international branded cannabis company as we head into 2024."

Recent Operating Highlights

On July 11, 2023, the Company successfully launched its Platinum branded vape products in the Ontario (Canada) market; which it then followed with its Platinum branded vape cartridges on August 23, 2023. Through the Company's distribution partnership, it continues to pursue product listings in Alberta, British Columbia, and Manitoba.

On November 3, 2023, the Company announced its entry into the rapidly growing Ohio cannabis market through the execution of a licensing arrangement with a first mover, vertically integrated Ohio distributor. This strategic partnership allows RWB to leverage the distributor's retail network to introduce its renowned Platinum Vape cartridges and disposable vapes, available in various formats, across more than ninety licensed retail locations in the state. Adult-use sales in Ohio have been projected to total between $1.5 billion to $2 billion in the first year, post legalization, reaching $3.5 billion to $4 billion by the fourth year, further underlining the immense potential of this market. The "yes" vote in Ohio means people aged 21 and over in the state will be able to use, grow or sell marijuana under a regulation-and-tax program imposed by the state. The measure takes effect in 30 days.

On November 9, 2023, the Company closed an asset purchase by a wholly owned subsidiary of the Company and issued 700,000 common shares at a deemed price of $0.06 per share, as final consideration. All securities issued are subject to a statutory hold period which will expire on March 8, 2024. None of the securities issued will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them will be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act.

As of November 22, 2023, the Company and Aleafia Health, Inc. ("Aleafia"), parties to a previously announced Amended Stalking Horse Agreement (collectively, the "Parties")1, had satisfied substantially all of the conditions to closing set forth in the Amended Stalking Horse Agreement. The Parties are continuing to collaboratively pursue, with the applicable government authorities, the remaining conditions required to obtain the required regulatory approvals. For this purpose, the Parties agreed to extend the outside date in the Amended Stalking Horse Agreement from November 22, 2023, to December 15, 2023, and currently anticipate closing the transactions contemplated under the Amended Stalking Horse Agreement by no later than December 15, 2023.

About Red White & Bloom Brands Inc.

Red White & Bloom is a multi-state cannabis operator and house of premium brands in the U.S. and Canadian cannabis sector. RWB is predominantly focusing its investments on influential cannabis markets, including Arizona, California, Florida, Massachusetts, Missouri, Michigan, Ohio, and Canada.

We seek Safe Harbor.