Ventura Cannabis and Wellness Corp (CSE:VCAN) has closed the sale of its California cannabis assets to Sacramento-based Vibe Bioscience Ltd for C$333,360 in cash.
In a separate deal, Vibe is also acquiring Ventura’s cannabis retail dispensary in Portland, Oregon in a share deal worth nearly C$1.9 million.
The transaction for Ventura’s subsidiary Cathedral Asset Holding Corporation, which owns the California assets, sees Ventura issued 669,398 shares of Vibe to be distributed to shareholders shortly, according to a statement Thursday.
READ: Ventura Cannabis and Wellness sells California and Oregon cannabis assets to Vibe Bioscience in cash and share deals
As additional consideration for the sale of Cathedral, Ventura will also receive 800,000 share purchase warrants, each exercisable for one common shares of Vibe at an exercise price of C$0.60 per share for a one-year term following closing of the deal. Ventura also plans to distribute these warrants to its shareholders.
The decision of the Los Angeles-based firm to sell its cannabis assets was motivated by the current state of the industry and the company’s financial position, its chairman Lloyd Kaplan told shareholders in August.
“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 at the time.
“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.”
Contact Angela at angela@proactiveinvestors.com
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