Vibe Closes Crescent City Cultivation Deal, Grows California Footprint

Cannabis company Vibe Bioscience Ltd. VIBE VBSCF has finalized the previously announced purchase of Crescent City, California-based 13,500 square feet cannabis cultivation facility.

According to Friday's press release, Vibe's subsidiary agreed to acquire all issued and outstanding shares of NGEV Inc, which owns a manufacturing facility and equipment for cannabis cultivation and is a land leaser in Crescent City.

Under the deal, Vibe issued 600,000 common shares and assumed approximately $463,000 in term debt.

The Sacramento, California-based company said it expects to enhance the cultivation of canopy by 40% within the facility for the production of cannabis flower and clones.

"This represents a unique, and strategic opportunity for Vibe to add premium cultivation capacity to our existing Hype Cannabis Co. high-quality flower, distillate vape cartridges, and wax concentrates," said Vibe CEO Mark Waldron in a prepared statement. "Our planned expansion of the cultivation canopy by 40% will enhance Vibe's supply chain and help Vibe meet the extraordinary demand we see in our stores for high-quality flower and Hype Cannabis Co. products."

Two weeks ago, Vibe posted a first-quarter earnings report, reveling its revenue spiked 225% year-over-year.

The company's dispensaries in California yielded roughly $4 million during the quarter, accounting for 93% of total revenue.