Marijuana Company of America, Inc. (OTCPK: MCOA) confirmed Wednesday that it has recently completed the acquisition of VBF Brands, Inc. a marijuana cultivator and distributor based in Salinas, California. VBF was previously a wholly-owned subsidiary of Sunset Island Group, Inc. (OTCPK: SIGO).

Based on the activity since the acquisition was completed in Q3 2021, MCOA expects this transaction will continue to be highly accretive to the company's EBITDA expectations for 2022 and will work towards increasing production at a nearby Salinas based facility that also offers exponential growth opportunities with other nearby land and facilities.

The Los Angeles-based company noted that California, as the country’s biggest legal cannabis market, provides great potential for MCOA with this acquisition that includes cannabis nursery, manufacturing/distribution and cultivation licenses.

Strengthening California Position

“The acquisition of VBF Brands, Inc. perfectly encapsulates MCOA’s strategy to expand our business by organic growth and acquisitions of synergistic and often undercapitalized assets existing today in the Cannabis industry,” said Jesus Quintero, CEO of Marijuana Company of America. “We are confident that by providing this entity with capital and operational depth to the already impressive operations will increase the capacity, and greatly bolster our position in the California Cannabis market."

VBF brands, Inc., which has been a cultivator and distributor in Salinas for the past two years, utilizes its own growing systems to produce popular cannabis clones that are proprietary certified clean, designed to assist growers by reducing uncertainty and enhancing the likelihood of a successful cultivation harvest. Cannabis clones, which carry the exact same genetic potential as their mother plant, have similar cannabinoid and terpene profiles when grown properly. When clones are selected from healthy, high-quality mother plants, they also inherit their vigor and natural resistance to mold, mildew and pests.

In addition, MCOA revealed that it has the option to acquire 51% of SIGO’s new cannabis grow facility, which is significantly larger than the current clone facility operated by VBF. The new facility is obtaining licenses for mass cultivation, manufacturing and distribution and is expected to have a projected annual income of over $30M after the first year of operations.

More recent news from MCOA:

Marijuana Company Of America Reports Record Q3 Revenue Of $442,178, Net Loss Of $1.77M

Marijuana Company Of America To Launch In-Store Cannabis Advertising Business: VapeTV US

Marijuana Company Of America Acquires cDistro To Boost Distribution Capabilities

Price Action

Marijuana Company of America shares closed Wednesday market session 6.25% lower at $0.0015 per share.

Photo: Courtesy of CRYSTALWEED cannabis on Unsplash