Vibe Growth Corp C.VIBE

Strategic investor

[lscfa]

It's got to be a larger cannabis co. taking a position with plans of buy out down the road.

[TheProphetElijah]

Why else the focus on a massive 254,000 square foot facility.  PLTH seems to be moving fast in Cali, heavily financed by Beacon since 2019. NWG went for $91m with half the revenue stream of Vibe.  The fight for Cali is on.

[nkbourbaki]

Anything's possible but I doubt it.  We should know soon enough.  Given the size of the placement it seems likely we'll see a disclosure shortly. Nice fat grant of 4.6m options @ 0.36 announced today.  All normal course, just Canadian microcaps at their finest.

[raptor0]

Yeah, that options grant is certainly concerning. A lower share count was one of the more attractive aspects to this company. Continual dilution isn't positive for longer-term shareholders. I wouldn't be so upset if they deployed capital appropriately into assets that we know have a strong chance of postive return. Management's gonna have to come out with something here, else we'

[nkbourbaki]

I stand somewhat corrected.  SEDI now identifies the strategic investor as Hadron Capital, through their Healthcare & Special Opps fund.  I don't know anything about them, but they put U$23m into MariMed back in March '21 to shore up their balance sheet, with another U$23m available to pursue growth opportunities.   So this transaction does indeed look strategic

[nkbourbaki]

It's worth reading through MariMed's strong Q3 results.  The co is new to me but the strategy seems very similar to Vibe's.  Makes a lot of sense Hadron would be interested in both.  MariMed operates in Mass, so I also wonder if they may be a potential buyer of VIBE's Mass assets.  Pure speculation as the Hadron investment doesn't imply a stronger connection

[TheProphetElijah]

After the Monterey expansion is finished that'll be 100,000 sq feet of cultivation facility including Crescent City and Sacramento.  With the option to expand another 200,000 on Moneterey - perfect for a major looking to cover Cali. When you put that into perspective Next Green Wave had 35,000 sq feet that sold for $91m, and Bloom Dispensaries with 63,000 sq feet bought by CURA for $211m