Planet 13 is planning on a fully legal Florida market.
Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) announced it is buying Florida-based VidaCann, LLC in a deal valued at $48.9 million. The deal also gives a VidaCann member a seat on the board and VidaCann shareholders will end up with 26% ownership in Planet 13.
According to the statement, VidaCann currently operates 26 dispensaries and is the 9th largest dispensary network in Florida. The company said that with Planet 13’s three dispensary locations in Nevada and California, upcoming Illinois dispensary, four leased dispensary locations in Florida, and proven SuperStore and experiential retail expertise, the proposed acquisition has the potential to enhance both absolute and per-store revenue generation.
“Acquiring VidaCann would significantly accelerate our time to market and, more importantly, scale in Florida. VidaCann is one of the 10 largest Florida cannabis operators by retail network size, and we believe it has developed a reputation for high product quality and customer service,” said Larry Scheffler, Co-CEO of Planet 13. “We are excited to bring Planet 13’s retail and product brands to Florida consumers after the closing of the proposed transaction, especially with the possibility of upcoming adult-use legislation.”
The deal consists of $4 million in cash, $5 million in promissory notes, and 78,461,538 in Planet 13 common shares which closed at 50 cents a share on Friday. VidaCann will continue to have $3 million of bank indebtedness and $1.5 million or less of related party notes to former VidaCann owners at the time of closing.
“We believe their ability to run lean, efficient operations is a cultural and strategic fit with Planet 13’s company-wide philosophy and operations in other states,” commented Bob Groesbeck, Co-CEO of Planet 13. “We laid out a set of goals at the beginning of the year, including using cost-effective M&A to accelerate time to market in Florida. We believe we are executing on our goals and setting Planet 13 up to be a stronger company in 2024.”
In addition to the stores, VidaCann also owns a fully operational, greenhouse cultivation facility with a processing and analytical lab, which at full capacity has the potential to support more than double the amount of the combined Planet 13 and VidaCann dispensary network in Florida.
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