SACRAMENTO, Calif. – Vibe Bioscience Ltd. (CSE:VIBE, OTC:VBSCF, GERMANY:A061) (the “Company” or “Vibe”), a California based cannabis retailer and cultivator, is pleased to announce it has entered into a definitive agreement to acquire Cathedral Asset Holding Corporation (“CAHC” or “Cathedral”) and its distribution and manufacturing assets in Santa Rosa, California. CAHC is a wholly owned subsidiary of Ventura Cannabis and Wellness Corp. (CSE: VCAN) (“Ventura”)
“The acquisition of Cathedral makes Vibe a true, vertically integrated cannabis cultivator, distributor, manufacturer and retailer in California, focused on the most dynamic cannabis market in the United States. Vibe is singularly focused on developing cannabis assets that are cash flow positive, and we anticipate the acquisition will be highly accretive to Vibe shareholders within 6 months. 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 Mark Waldron, CEO of Vibe.
Cathedral, a corporation organized under the laws of California, leases a facility in Santa Rosa, California and is licensed for distribution and manufacturing of regulated cannabis. Cathedral’s distribution license and facility will allow Vibe to complete logistics and fulfillment from its cultivation facilities to its retail store network and allow for the transportation, packaging, labelling, testing, storage, and transfer of its marijuana products. The manufacturing license will allow Vibe to expand its Hype Cannabis Co. product line and produce a wide variety of all-natural Hype Cannabis Co. products.
Vibe will acquire all the issued and outstanding shares of Cathedral for $333,360 Canadian dollars in an all share transaction and will assume the lease obligation for the Santa Rosa facility, as well as the existing inventory of vape products. Ventura will also receive twelve month at the money warrants to acquire up to 800,000 shares of Vibe. The completion of the Cathedral acquisition is subject to, among other things, the receipt of regulatory approvals and the satisfaction of closing conditions. The acquisition is scheduled to close on September 15, 2020.
“Vibe By California’s brand has firmly established itself in California by providing exceptional experiences to our customers. The Cathedral acquisition accelerates Vibe’s position as a leading, integrated California cannabis company. Vibe remains well positioned for continued growth in the second half of 2020,” stated Mr. Waldron.
TRANSACTION HIGHLIGHTS
Cathedral Distribution
- Significantly expands California logistics & fulfillment capabilities
- Allows for the transportation, packaging, labelling, testing, storage and transfer of regulated cannabis products
- Provides fast distribution network and an advanced inventory management platform to ship product to stores within 24 hours
- Enables secure and environment-controlled storage of cannabis products
- Gives Vibe quarantine and BCC final compliance testing through a licensed laboratory
- Promotes supply chain integrity
- Allows for improved delivery speed of fresh clones from our nursery to our stores
- Simplifies existing complex supply chain network, from laboratory testing to legal requirements
- Helps coordinate, create and implement in-store promotions, digital advertising, print materials
Cathedral Manufacturing
- Allows manufacturing to produce additional Hype Cannabis Co. products
- Creates the ability to produce a wide variety of Hype Cannabis Co. pesticide-free products to the highest standards for quality and potency
- Enables pharmaceutical level processes to deliver superior quality, all-natural cannabis products
- Expands plant preparation and harvesting from our cultivation facility
- Ensures the cleanest, safest, and most efficient production processes yielding the highest quality product
Vibe Announces Agreement to Acquire Portland, Oregon Cannabis Dispensary
- Vibe acquires operating retail dispensary in Portland, Oregon
- Vibe receives $1.2 million cash and working capital
“The acquisition of Portland extends Vibe’s West Coast retail footprint, strengthens our growth and expansion capital, and as a market leader in our operating markets we believe there is tremendous potential to expand this location’s revenues and delivery potential. With the strength of our highly skilled executive team and strong industry relationships, Vibe is eager to establish itself as a profitable operator in the Portland market. Vibe’s strong Q2 financial results have displayed our ability to profitably operate and increase market share in competitive markets,” said Mark Waldron, CEO of Vibe.
Vibe is acquiring 100% of the issued and outstanding shares of PAHC for $1,889,000 Canadian dollars in an all share transaction. Ventura will also receive twelve month at the money warrants to acquire up to 1,200,000 shares of Vibe. The PAHC acquisition includes a retail dispensary license, a leased store location in the City of Portland, and working capital of approximately $1.2 million CAD. The completion of the Portland acquisition is subject to, among other things, Ventura shareholder approval, approval of the Canadian Securities Exchange, the receipt of regulatory approvals, receipt of certain consents from third parties, and the satisfaction of closing conditions. The acquisition is anticipated to close on October 24, 2020.
About Vibe Bioscience Ltd.
Vibe is an integrated cannabis company delivering exceptional retail experiences with its Vibe By California brand and ethos, premier cultivation product and high-efficiency delivery, and on-line sales. The Company’s management team brings expertise in retail, cannabis cultivation and mergers and acquisitions to support its U.S. expansion through accretive acquisitions and organic growth. Vibe is listed on the Canadian Securities Exchange under the symbol VIBE, on the OTC under symbol VBSCF, and in Germany as A061. To learn more about Vibe, please visit www.vibebycalifornia.com
