Ventura Cannabis and Wellness Corp (CSE:VCAN) inked a set of deals with cannabis company Vibe Bioscience Ltd (CSE:VIBE) to sell its California and Oregon assets.
In the first deal, reported over the weekend, Ventura said it is selling its subsidiary Cathedral Asset Holding Corporation, which holds distribution and manufacturing assets in Santa Rosa, California to Vibe Bioscience for C$333,300 in cash and 800,000 shares of Vibe.
The second deal, announced Monday, sees Ventura selling Vibe its cannabis retail dispensary in Portland, Oregon in a share deal worth nearly C$1.9 million.
READ: Ventura Cannabis and Wellness says California cannabis assets have big revenue potential as the firm delivers C$1.3 million in revenue during 1Q
Los Angeles-based Ventura’s decision to sell its cannabis assets was motivated by the current state of the industry and the company’s financial position, according to its chairman, Lloyd Kaplan.
“The board has continually analyzed the current and future cannabis market, VCAN’s current and prospective financial position, and it has determined selling the company’s assets to another CSE listed cannabis company and delisting is the best path forward for the company and most importantly its shareholders,” Kaplan told investors in a statement Monday.
“I am pleased to be trading our cannabis assets into a better capitalized company with more revenues and a top flight management team and, more importantly, the deal is poised to be done at a premium to our current stock price.”
The deal for the California assets is expected to close by September 15 and the Oregon assets are poised to close by October 24, with proceeds from both assets distributed to Ventura’s shareholders.
Ventura is holding a special meeting of its shareholders on October 23 to seek approval for the Portland transaction and seek shareholder approval for to delist from the Canadian Securities Exchange.
Contact Angela at angela@proactiveinvestors.com
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