Marijuana Company of America Inc. Acquires VBF Brands, Inc. Expanding Footprint in California’s Growing Cannabis Grower Market
LOS ANGELES, Dec. 15, 2021 (GLOBE NEWSWIRE) -- via InvestorWire – Marijuana Company of America, Inc. (OTC: MCOA) (“the Company”), a diversified holding company with operations and investments throughout the cannabis industry, announces that it has recently completed the acquisition of VBF Brands, Inc. (“VBF”) a marijuana cultivator and distributor based in Salinas, California. VBF was previously a wholly-owned subsidiary of Sunset Island Group, Inc. (OTC: SIGO).
Based on the activity since the acquisition was consummated in Q3 2021, MCOA expects this transaction will continue to be highly accretive to the Company's EBITDA expectations for 2022 and will work towards increasing production at a nearby Salinas based facility that also offers exponential growth opportunities with other nearby land and facilities.
California continues to be the country’s largest legal cannabis market and offers tremendous market potential for MCOA with this acquisition that includes cannabis nursery, cannabis manufacturing/distribution and cultivation licenses.
Jesus Quintero, CEO of Marijuana Company of America, Inc. stated, “The acquisition of VBF Brands, Inc. perfectly encapsulates MCOA’s strategy to expand our business by organic growth and acquisitions of synergistic and often undercapitalized assets existing today in the Cannabis industry. We are confident that by providing this entity with capital and operational depth to the already impressive operations will increase the capacity, and greatly bolster our position in the California Cannabis market."
VBF brands, Inc. has been a cultivator and distributor in Salinas, California, for the past two years and utilizes its own growing systems to produce popular cannabis clones that are proprietary certified clean, designed to assist growers by reducing uncertainty and enhancing the likelihood of a successful cultivation harvest. Cannabis clones carry the exact same genetic potential as their mother plant and have similar cannabinoid and terpene profiles when grown properly. When clones are selected from healthy, high-quality mother plants, they also inherit their vigor, and natural resistance to mold, mildew, and pests.
Quintero added, “We are especially intrigued with this acquisition because of VBF’s reputation for high-quality clones and its unique use of its growing space. The Company employs a three-tiered growing system, thereby maximizing the square footage of its Salinas, California, facility. Few growers offer the efficiency of VBF Brands, Inc., which provides greater efficiency and sustainable cultivation techniques to provide growers with access to locally grown, high-quality clones to grow cannabis flower. Clones are made in an expedient manner and sold for use to other cannabis flower growers that now don’t have to wait six months to cultivate and sell.”
This latest acquisition exemplifies MCOA’s commitment to grow its business while remaining fiscally prudent and further establish itself as a leader in the legalized cannabis THC, hemp & CBD industries. MCOA offers unique and diversified exposure to the global cannabidiol sector and fully intends to continue expanding its footprint with investments and collaborations with both new and existing strategic partners as well as spur organic growth from synergistic acquisitions.
Marijuana Company of America offers the highest quality premium-brand products and the opportunity to be at the vanguard of growth and innovation in the legal cannabis and industrial hemp industries.
We are excited about the growth potential with our partners at SIGO that we acquired from VBF as we work to significantly expand our footprint in Salina. MCOA has the option to acquire 51% of SIGO’s new cannabis growth facility that is significantly larger than the current clone facility operated by VBF. The new facility is obtaining licenses for mass cultivation, manufacturing, and distribution and should have projected annual income after the first year of operations of over $30M.
About Marijuana Company of America, Inc.
Marijuana Company of America (MCOA) invests in the cannabis sector directly. The company’s operations include C-Distro, one of the THC, Hemp & CBD cannabis industries fastest growing distribution companies, and hempsmart™, a Premium CBD company. The company's core mission is to leverage its experience, and access to capital to identify and invest in acquisitions with unique growth potential.
This news release contains 'forward-looking statements,' which are not purely historical and may include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs, and results of new business opportunities and words such as 'anticipate,' 'seek,' 'intend,' 'believe,' 'estimate,' 'expect,' 'project,' 'plan,' or similar phrases may be deemed 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic reports filed from time to time with the Securities and Exchange Commission.
For more information, please visit www.marijuanacompanyofamerica.com or visit www.sec.gov.
Released December 15, 2021