Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) said it has exercised and closed its option to purchase the remaining 51% of Planet 13 Illinois LLC from Frank Cowan for US$866,250 in cash and 1,063,377 common shares under an option purchase agreement entered into on August 4, 2022.
Planet 13 Illinois holds a dispensary licence for the Planet 13 dispensary located in Waukegan, Illinois. The dispensary is in a prominent shopping centre with multiple stores, restaurants, hotels and a recently announced casino project. It is off the Interstate 94 highway between Milwaukee and Chicago, close to the Wisconsin border.
"We're thrilled to exercise this option for the remaining 51 per cent of our Planet 13 Illinois dispensary at a price that we view as very accretive," said Bob Groesbeck, co-chief executive officer of Planet 13 in a statement.
READ: Planet 13 heralds fourth Florida dispensary located in Port Orange in the Daytona Beach metro area
"This transaction is a good example of our philosophy at Planet 13. One, location is everything. We couldn't have a better spot than our dispensary next to an approved casino project and off the major interstate between Milwaukee and Chicago. Two, a disciplined and patient approach to finding attractively priced opportunities and cash management. And three, creating one-of-a-kind retail destinations designed to thrill our customers," he added.
Construction at the dispensary is underway with an opening date anticipated later this year. Planet 13 has received all local and state approvals, excluding final approval upon completion of construction.
As of August 4, 2022, option agreement date and February 7, 2023, option exercise date, the Planet 13 shares issued to Cowan were valued at US$2 million and $950,021, respectively, based on five-day volume-weighted average prices.
The shares will be subject to a four-month-and-one-day hold period under Canadian securities laws and a minimum of six months following the date of issuance for resales under Rule 144 promulgated under the US Securities Act of 1933 (assuming all other requirements of Rule 144 are satisfied at such time), and following such six month period will be subject to a lock-up whereby one/12th of the Planet 13 shares will be released each month thereafter in accordance with a lockup agreement with Cowan
Planet 13 is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations in Las Vegas and in Orange county, California.
The company also holds a medical marijuana treatment centre licence in Florida and a 49% interest in Planet 13 Illinois which holds a provisional social equity justice-involved dispensing licence in the Chicago region of Illinois.
Contact the author at jon.hopkins@proactiveinvestors.com