Vibe Growth to Further Expand California Cultivation Operations
Vibe Growth Corporation, a vertically integrated multi-state cannabis enterprise, 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.
“Vibe continues to deploy capital prudently in the highest growth and margin areas of the California cannabis market,” said Mark Waldron, CEO of Vibe Growth Corporation. “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.”
Details of Acquisition
Vibe Growth has entered the purchase agreement 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.
To learn more about Vibe, visit www.vibebycalifornia.com.