Vibe Bioscience's wholly-owned subsidiary has entered into an acquisition agreement to acquire a 13,500 square foot cannabis cultivation facility in Crescent City, California. "Under the NGEV Purchase Agreement with security holders of NGEV, Vibe’s subsidiary acquire all issued and outstanding shares of NGEV," the team with the company explains. "The acquisition will be completed with the issuance of 600,000 common shares of Vibe and the assumption of approximately US$463,000 in term debt, subject to the terms and conditions of the NGEV Purchase Agreement."
NGEV owns a production facility, cannabis cultivation equipment and leases land in Crescent City, California. "The cultivation facility provides a turnkey operation that has historically produced cannabis flower, clones and seeds. In addition to the immediate synergies with Vibe’s California operations, the leased land offers a future expansion opportunity to increase the cultivation canopy by up to 40%. The transaction will provide Vibe with a second licensed facility and is expected to enhance the profitability of Vibe’s Hype Cannabis Co. branded products."
"We expect this acquisition to generate shareholder value by growing our market share and generating additional brand equity. It will also support our expanding retail assets, improve margins, and profitability through vertical integration. I strongly believe the NGEV Acquisition represents a unique and strategic opportunity to add cultivation capacity to our existing Hype Cannabis Co. high-quality flower, distillate vape cartridges and wax concentrates," said CEO Mark Waldon.
The completion of the NGEV Acquisition is subject to, among other things, the receipt of regulatory approvals (including, if required, the approval of the Canadian Securities Exchange), receipt of certain consents from third parties, and the satisfaction or waiver of closing conditions. Vibe intends to commence cultivation operations immediately upon receipt of all written regulatory approvals. Completion of the NGEV Acquisition is expected to occur on or about April 15, 2020.
For more information:
Vibe Bioscience
8112 Alpine Ave
Sacramento, CA 95826, USA
vibebycalifornia.com