Vibe Growth Announces Further California Cultivation Expansion
- Vibe has entered into a purchase agreement for 10 acres of F40 zoned agricultural land in Monterey County, California
- USD $5.1 million purchase price - permit application submitted
- Phase 1:
- 66,000 square feet of mixed light greenhouse cannabis cultivation footprint
- 13,000 pounds of high potency cannabis flower per annum in Phase 1
- The estimated construction cost of $1.1 million per 22,000 square foot greenhouse
- Phase 1 construction to begin in 2021
- Future full potential 254,000 square feet of greenhouse cultivation
- Financing via treasury cash and debt capital
Sacramento, California--(Newsfile Corp. - July 21, 2021) - Vibe Growth Corporation (CSE: VIBE) (OTC Pink: VBSCF) (FSE: A061) (the "Company" or "Vibe"), a leading vertically integrated multi-state cannabis enterprise, announces the expansion of its California cultivation operations as it has entered into a 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 (the "Greenhouse").
"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.
DETAILS OF ACQUISITION
Vibe Growth announces it has entered into a purchase agreement to acquire 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. The acquisition is expected to close in Q3 2021, subject to regulatory approvals, due diligence, and customary closing conditions. Vibe's Monterey acquisition will serve as its flagship greenhouse cultivation facility. The Company will commence 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 $1.1 million per 22,000 square foot greenhouse, including building and site costs. The Company has a strong balance sheet and healthy cash position of $13.4 million (end of Q1 2021) and anticipates using some debt capital for its Monterey construction.
ABOUT VIBE GROWTH CORPORATION
Vibe Growth Corporation and its cannabis retail brand, Vibe By California, is a trusted, California focused, multistate (MSO) cannabis enterprise with retail dispensaries; cannabis greenhouse cultivation; premium indoor cultivation; commercial cannabis distribution; brand sales and marketing; e-commerce platform; home delivery; and Hype Cannabis Co. marijuana and Vibe CBD products. In California, Vibe is focused on maximizing shareholder value through accelerating organic growth, opportunistic acquisitions, distressed workouts, and new license applications. The Company operates retail and e-commerce under its iconic Vibe by California brand.
To learn more about Vibe, please visit: www.vibebycalifornia.com
Cautionary Note Regarding Product & Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "anticipate", "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties' current belief or assumptions as to the outcome and timing of such future events, and may be impacted as a result of general economic conditions or the ongoing COVID-19 pandemic. In this news release, forward-looking statements relate to, among other things, the Company's expectations of revenue, EBITDA profitability and adjusted funds flow, higher sales volumes, and the company's retail operations. Actual future results may differ materially.
The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties, and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. Risk factors related to the Company are described in the Company's Management Discussion and Analysis, a copy of which is available under the Company's profile on SEDAR.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any State securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Not for distribution to U.S. Newswire Services or dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws.
Unlike in Canada which has Federal legislation uniformly governing the cultivation, distribution, sale, and possession of medical cannabis under the Cannabis Act (Federal), readers are cautioned that in the U.S., cannabis is largely regulated at the State level. To the knowledge of Vibe Growth Corporation, there are to date a total of 33 states, plus the District of Columbia, that have legalized cannabis in some form. Notwithstanding the permissive regulatory environment of medical cannabis at the State level, cannabis continues to be categorized as a controlled substance under the Controlled Substances Act in the U.S. and as such, cannabis related practices or activities, including without limitation, the manufacture, importation, possession, use or distribution of cannabis are illegal under U.S. federal law. Strict compliance with state laws concerning cannabis will neither absolve Vibe of liability under the U.S. Federal law nor will it provide a defense to any Federal proceeding, which may be brought against Vibe Growth Corporation. Any such proceedings brought against Vibe may adversely affect its operations and financial performance.
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