Sacramento, California–(Newsfile Corp. – January 25, 2021) – Vibe Growth Corporation (CSE: VIBE) (OTC Pink: VBSCF) (FSE: A061) (the “Company” or “Vibe“), a vertically integrated cannabis operator, provides an operational update on preliminary unaudited fourth quarter 2020 revenues for the period ending December 31, 2020 (“Q4 2020”). All dollar amounts in this press release are in U.S. dollars.
Q4 2020 revenue is expected to exceed $6.5 million
Q4 2020 revenue anticipated to increase 61% over the year prior period
Gross margins have increased since Q3 2020
Expansion of Sacramento cultivation
Growth in the quarter was driven primarily by increased customer visits, average consumer basket sizes, and online sales. The Company expects to report positive EBITDA in Q4 2020 due to higher sales, strong gross margins, and increased eCommerce activity. Vibe expects to release its full year 2020 financial results for the year ended December 31, 2020, by mid-April.
“Despite general economic and retail disruptions from the COVID pandemic, Vibe’s higher sales continue to be driven by increased market penetration, customer growth, and Vibe eCommerce sales. We are seeing continued momentum in January, which is driving Vibe’s further expansion of its cultivation capacity”, said Mark Waldron, CEO of Vibe.
Vibe is pleased to announce expansion plans for its Sacramento Cannabis Campus (“SCC”) and has commenced the first phase of a four-phase expansion cycle. The expansion will provide commercial-scale cultivation automation and will increase cultivation capacity, subject to the receipt of local and state regulatory approvals.
The expansion will allow Vibe to add much needed capacity for its customer favorite Hype Cannabis Co. strains and allow Vibe to produce improved genetics that has proven to minimize pest and mildew susceptibility resulting in improved THC, terpene profiles, and yield.
About Vibe Growth Corporation
Vibe Growth Corporation and its cannabis retail brand, Vibe By California, is a trusted, vertically integrated, multi-state cannabis organization that proudly serves hundreds of thousands of clients annually through its 5 retail dispensaries and operates cannabis greenhouse cultivation; premium indoor cultivation; commercial cannabis distribution, brand sales & marketing, e-commerce, home delivery, and manufactures Hype Cannabis Co. marijuana products. The Company operates retail and e-commerce under its iconic Vibe By California brand. To learn more about Vibe, please visit www.vibebycalifornia.com.
Note on Preliminary Results
These preliminary and unaudited operating highlights are subject to the Company’s customary financial statement procedures by the Company. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial highlights, the highlights involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See “Cautionary Note Regarding Forward-Looking Information” below.
Cautionary Note Regarding Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “anticipate”, “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current belief or assumptions as to the outcome and timing of such future events, and may be impacted as a result of general economic conditions or the ongoing COVID-19 pandemic. In this news release, forward-looking statements relate to, among other things, the Company’s expectations for Q4 2020 revenue, EBITDA profitability and adjusted funds flow, higher sales volumes and the company’s retail operations. Actual future results may differ materially.
The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. Risk factors related to the Company are described in the Company’s Management Discussion and Analysis, a copy of which is available under the Company’s profile on SEDAR.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any State securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable State securities laws or an exemption from such registration is available. Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws.
Unlike in Canada which has Federal legislation uniformly governing the cultivation, distribution, sale and possession of medical cannabis under the Cannabis Act (Federal), readers are cautioned that in the U.S., cannabis is largely regulated at the State level. To the knowledge of Vibe Growth Corporation, there are to date a total of 33 states, plus the District of Columbia, that have legalized cannabis in some form. Notwithstanding the permissive regulatory environment of medical cannabis at the State level, cannabis continues to be categorized as a controlled substance under the Controlled Substances Act in the U.S. and as such, cannabis-related practices or activities, including without limitation, the manufacture, importation, possession, use or distribution of cannabis are illegal under U.S. Federal law. Strict compliance with State laws with respect to cannabis will neither absolve Vibe of liability under the U.S. Federal law, nor will it provide a defense to any Federal proceeding, which may be brought against Vibe Growth Corporation. Any such proceedings brought against Vibe may adversely affect its operations and financial performance.
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