California cannabis company Vibe Growth Corporation announces the closing of its previously announced 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.
Vibe Growth announces it has acquired 10 acres of land previously having 254,000+/- square feet of greenhouses in Monterey County, California for a total consideration of USD $5.1 million in cash. Vibe's Monterey acquisition will serve as its flagship greenhouse cultivation facility. The company has commenced 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 $3.3 million for 66,000 square foot of greenhouse cultivation, including building and site costs. The appraisal value of the land exceeds the acquisition price, and Vibe will fund the $3.3 million construction cost with a mixture of working capital and mortgage financing. The company says to have a strong balance sheet and healthy cash position of $12.99 million (end of Q2 2021).