- A Vibe Bioscience (CSE:VIBE) subsidiary is acquiring a cannabis cultivation facility in California from NGEV Inc
- This will be the second licensed facility in California that Vibe has acquired
- The acquisition’s completion is subject to regulatory approval, consent from third parties, and the satisfaction or waiver of closing conditions
- The acquisition is likely to be completed on or around April 15, 2020
- Vibe Bioscience (VIBE) remains unchanged, with shares currently trading at C$0.03
A subsidiary of cannabis company Vibe Bioscience (CSE:VIBE) has agreed to acquire a cannabis cultivation facility from NGEV Inc.
The 13,500 square foot facility in Crescent City is the second licensed facility that Vibe will acquire in California.
Under the purchase agreement, Vibe’s subsidiary will acquire all issued and outstanding shares of NGEV.
Vibe will complete the acquisition by issuing 600,000 of its common shares, and assuming over C$627,000 in term debt. This will be subject to the terms and conditions of the NGEV Purchase Agreement.
Operations at the production facility, with its cannabis cultivation equipment, have historically produced cannabis flower, clones, and seeds. The leased land provides an opportunity for future expansions, such as increasing cultivation canopy by up to 40 per cent.
In addition to adding a second licensed facility to Vibe’s assets, the transaction will also increase profitability of Vibe’s Hype Cannabis Co. branded products.
Vibe CEO, Mark Waldon, commented on the purchase.
“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.
“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,” he said.
The acquisition’s completion is subject to various conditions, including regulatory approvals, third party consent, and the satisfaction or waiver of closing conditions. Regulatory approval may possibly be required from the Canadian Securities Exchange, if necessary.
As soon as the company has received written receipts of all regulatory approvals, Vibe plans to immediately start cultivation operations.
The NGEV Acquisition is likely to occur on, or around April 15, 2020.
Vibe Bioscience (VIBE) remains unchanged, with shares currently trading for C$0.03 at 10:56am EST.