Ventura Cannabis To Sell California And Oregon Assets To Vibe Bioscience

Ventura Cannabis and Wellness Corp. VCAN opted to sell some assets in California and Oregon to Vibe Bioscience Ltd. VIBE.

Ventura’s Chairman, Lloyd Kaplan, said Monday the board has determined that “selling the company’s assets to another CSE listed cannabis company and delisting is the best path forward for the company and most importantly its shareholders.”

California Acquisition

The Sacramento-based cannabis retailer agreed to purchase Ventura’s subsidiary - Cathedral Asset Holding Corporation - as well as distribution and manufacturing assets in Santa Rosa.

Pursuant to the agreement, Vibe will obtain 100% of Cathedral’s issued and outstanding shares for CA$333,360.

It will also undertake the lease obligation for the facility in Santa Rosa and the existing inventory of vape products.

In exchange, Venture is granted rights to acquire up to 800,000 Vibe’s shares, according to the press release.

The acquisition will be finalized on September 15, following the obtaining of regulatory approvals.

 “We could not be more pleased with the strategic and geographic fit of adding Cathedral’s distribution and manufacturing assets to Vibe’s growing, profitable cannabis portfolio,” said Vibe’s CEO Mark Waldron.

Meanwhile, in July, Vibe signed a triple net lease deal for a commercial property in Ukiah, that way, expanding its presence in the state.

Oregon Acquisition

Under the separate deal, Vibe opted to buy Ventura’s subsidiary - Portland Asset Holding Corporation - and its Portlandbased cannabis retail dispensary.

Ventura agreed to sell all PAHC’s issued and outstanding shares for roughly CA$1.9 million.

According to the company’s update, Ventura can acquire up to 1.2 million Vibe’s shares.

Besides a retail dispensary license, the PAHC acquisition also includes a leased store location in Portland, as well as working capital of around CA$1.2 million.

The closing of the acquisition is scheduled for October 24.

“The acquisition of Portland extends Vibe’s West Coast retail footprint, strengthens our growth and expansion capital,” stated Waldron, adding that the company is “eager to establish itself as a profitable operator in the Portland market.”

Courtesy photo