Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) said it will be acquiring private-held Florida-based cannabis cultivation, processing, transportation, fulfilment and storage, and dispensing company VidaCann for total consideration of approximately US$48.9 million to accelerate its Florida expansion strategy.
The company said the acquisition adds VidaCann’s expansion retail dispensary network, the 9th largest in Florida with 26 dispensaries.
It also adds VidaCann’s state-of-the-art cultivation processing facility, a complementary brand portfolio, and a strong local management team.
Planet 13 co-CEO Larry Scheffler said acquiring VidaCann would significantly accelerate the company’s 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," he said.
"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."
Co-CEO Bob Groesbeck added in a statement: “Part of the appeal of this deal is the amazing management team of VidaCann that has built it into the 9th largest Florida cannabis company with limited debt or outside capital. 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.”
The approximately US$48.9 million consideration package is made up of 78,461,538 common shares in Planet 13, a cash payment of US$4 million, and promissory notes to be issued in the aggregate principal amount of US$5 million.
Following the transaction, the former equity holders of VidaCann and its industry advisory will own about 26.09% of Planet 13 on a fully diluted basis.
The acquisition is expected to close in or immediately before the first quarter of 2024.
Planet 13 is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations in Las Vegas and Orange County, California.
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