- Vibe Bioscience (VIBE) has signed a deal to acquire Cathedral Asset Holding Corporation, which owns a number of cannabis facilities in California
- Cathedral, a wholly owned subsidiary of CSE-listed Ventura Cannabis and Wellness, owns, among other assets, a manufacturing and distribution centre in Santa Rosa
- As consideration for the acquisition, Vibe will issue to Cathedral a total of C$333,360 in common shares along with warrants to purchase up to 800,000 additional shares
- The acquisition is scheduled to close on September 15, 2020, subject to regulatory approval
- Vibe Bioscience (VIBE) is currently up 10 per cent and is trading at 44 cents per share at 11:49am EDT
Vibe Bioscience (VIBE) has signed a deal to acquire Cathedral Asset Holding Corporation, which owns a number of cannabis facilities in California.
A wholly owned subsidiary of CSE-listed Ventura Cannabis and Wellness (VCAN), Cathedral owns a distribution and manufacturing centre in Santa Rosa.
Under the terms of the deal, Vibe will issue C$333,360 in common shares in exchange for all of Cathedral’s issued and outstanding capital. Vibe will also assume the lease obligation for the Santa Rosa facility, as well as the existing inventory of vape products.
In addition, the company will issue twelve month at-the-money warrants allowing Ventura to acquire up to 800,000 common shares in Vibe.
On top of the physical assets, Cathedral also holds a distribution license, which will allow Vibe to to carry out logistics and fulfilment from its cultivation facilities to its retail store network. This includes transportation, packaging, labelling, testing, storage and the transfer of its marijuana products.
The license forms a key pillar in the expansion of Vibe’s Hype Cannabis Co. product line, which extends to the production of a wide variety of all-natural products.
Mark Waldron, CEO of Vibe Bioscience, said the acquisition of Cathedral provides the opportunity for a true vertically integrated cannabis cultivation, distribution, manufacturing and retail operation in California.
“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 six 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,” he added.
Vibe Bioscience (VIBE) is currently up 10 per cent and is trading at 44 cents per share at 11:49am EDT.
