On November 9, 2018, Vegalab, Inc. entered into a Packing Facility Lease Agreement with ACMPC California 3, LLC (ACM). Also on that date, the company entered into a Purchase and Sale Agreement with ACM (collectively, the Agreements) concerning that certain real property consisting of a commercial citrus packing facility located in Lindsay, California. The company will lease the facility for $25,000 per month until November 1, 2019. Following the end of the term, the company will have an option to purchase the facility for $4,250,000.