Vibe Growth Corporation is expanding its California cultivation operations as it has entered into a purchase agreement for the acquisition of a 10-acre parcel of land in Monterey County, California for 254,000+/- square feet of potential greenhouse cannabis cultivation.
"Vibe continues to deploy capital prudently in the highest growth and margin areas of the California cannabis market. Our strategy in California has been focused on vertical integration, cultivation, and retail sales. The Monterey greenhouse acquisition allows us to scale and grow our cultivation and production, meet the demand for our branded products, and grow margins significantly," stated Mark Waldron, CEO of Vibe Growth Corporation.
The acquisition is expected to close in Q3 2021, subject to regulatory approvals, due diligence, and customary closing conditions. Vibe's Monterey acquisition will serve as its flagship greenhouse cultivation facility. The company will commence its 66,000 square foot Phase 1, with the future potential to develop 188,000 additional square feet in future Phases 2 and 3.
The company anticipates the construction cost of Monterey Phase 1 to be $1.1 million per 22,000 square foot greenhouse, including building and site costs. The Company has a strong balance sheet and healthy cash position of $13.4 million (end of Q1 2021) and anticipates using some debt capital for its Monterey construction.
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Vibe Growth Corporation