Vibe's Subsidiary To Purchase Cannabis Cultivation Facility In Crescent City

Cannabis retailer and grower Vibe Bioscience Ltd. VIBE said Monday its subsidiary will purchase a 13,500 sq. foot cannabis cultivation facility in Crescent City, California.

Per the purchase agreement with security holders of NGEV, Inc., the company’s subsidiary will obtain all issued and outstanding shares of NGEV.

To finalize the purchase, Vibe should issue 600,000 common shares and assume around $463,000 in term debt under the terms of the agreement. The acquisition is also subject to the receipt of several regulatory authorizations, consents and fulfillment of closing conditions.

See Also: Vibe Bioscience Reports $3.1M In Q2 Consolidated Revenue

"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," CEO Mark Waldon said in a statement.

The facility offers turnkey operation that has cultivated cannabis flower, clones, and seeds, and the leased land carries an option for further expansion of the growing canopy by 40%, the company said.

Vibe has plans to start growing activities immediately once it receives all regulatory approvals.