US (CA): Acquisition of a Santa Rosa-based manufacturing and distribution business

Vibe Bioscience has entered into a definitive agreement to acquire Cathedral Asset Holding Corporation and its distribution and manufacturing assets in Santa Rosa, California. 

“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 team with the company explains. "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.

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