This Cannabis Microcap Just Bought Its Way Into Two of Europe's Biggest Markets

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Friday, September 11, 2026

While North American cannabis operators spend another year waiting on Washington, the growth story has quietly moved across the Atlantic. Germany's 2024 reforms turned its pharmacy-based medical cannabis market into the largest regulated one in Europe, with imports nearly tripling in a single year and annual sales clearing €1 billion. The United Kingdom is building a private medical channel of its own.

Shares of Red White & Bloom Brands Inc. (CSE: RWB) are surging Friday after the company closed a strategic transaction with HEAL Botanicals Pharma Inc. that gives it a controlling interest in HEAL Europe Holdings Corp., a newly formed entity built to hold an integrated European medical cannabis platform. The deal establishes RWB in Germany and the United Kingdom in one move.

The European Platform spans pharmacy operations, pharmaceutical distribution, medical cannabis brands, patient access, fulfillment and logistics. Its anchor is the Grünhorn group, which filled roughly 290,000 medical cannabis prescriptions in the twelve months ended July 2026. Across all the businesses in the platform, more than 12 tonnes of medical cannabis were dispensed or distributed over the same period.

Grünhorn operates an online medical cannabis pharmacy, pharmaceutical wholesale and distribution, fulfillment infrastructure and digital patient access, serving patients and healthcare providers across Germany. The market it sits in is moving fast. German medical cannabis imports rose from about 73 tonnes in 2024 to about 205 tonnes in 2025, an increase of roughly 176%.

On the UK side, RWB takes controlling interests in Leva HEAL Limited and Zerenia Clinics Limited, the latter operating a private medical cannabis clinic. The UK imported more than 30,000 kilograms of dried cannabis flower in 2025, with the private medical sector offering additional room for growth as physician awareness and patient access expand.

The transaction gives RWB a 62.63% stake in HEH for nominal consideration. Since HEH owns 80% of Grünhorn Gruppe AG, RWB ends up with an indirect 50.1% interest in Grünhorn. RWB also holds a direct 29.82% interest in each of Zerenia and Leva, which combined with HEH's 50.25% stake in each brings its effective interest in both to roughly 61.3%.

RWB has also committed up to C$25 million through a senior secured credit facility, with C$18.7 million already advanced. The facility carries a fixed 12% interest rate, matures September 10, 2029, and includes a six-month period during which interest is capitalized into principal. RWB holds a senior secured position over HEH's assets, giving it exposure through both controlling equity ownership and secured lending.

"With the foundation of the Company strengthened, we are now positioned to continue executing on our broader growth strategy," said Colby De Zen, President of RWB, pointing to the recent divestiture of the Florida operations and acquisition of Ayurcann Inc. as groundwork for the company's broader strategy.

Shares of RWB are up 50.0% to C$0.045 in early Friday trading.

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