Planet 13 Holdings has announced a $48.9 million acquisition of VidaCann, a vertically integrated cannabis operator in Florida with 26 medical marijuana dispensaries. A recent news release revealed that both companies’ boards unanimously approved the total acquisition of VidaCann’s debt, cash and stock by Las Vegas-based cannabis firm Planet 13 Holdings.
The membership interest purchase agreement will see Planet 13 Holdings acquire an operational greenhouse cultivation facility, an analytical and processing laboratory, and three product lines, including licensed brands Stanley Brothers, Tikun Olam and the VidaCann house brand. The state-of-the-art facility is fully operational and capable of supporting more than two times the volume of cannabis that flows through VidaCann’s and Planet 13’s dispensary networks combined.
According to Planet 13’s co-CEO Larry Scheffler, VidaCann is among the 10 largest marijuana operators in retail size in the entire state of Florida. Furthermore, Scheffler noted that the Florida-based cannabis company has developed a reputation for producing high-quality products and providing great customer service. Acquiring the company will allow Planet 13 to “significantly accelerate” its entry into the Florida market, Scheffler said, and also allow it to capture a greater share of the market.
Planet 13 currently has 13 retail operations in the state of California along with 4 leased retail operations in Florida; the company is also set to launch a retail store in Illinois.
Scheffler said that Planet 13 was partly drawn to the acquisition deal by the prospect of teaming up with VidaCann’s “amazing management team” as it has built VidaCann into the ninth largest marijuana company in the state with little outside capital and limited debt. Scheffler added that VidaCann’s management’s ability to run a lean and efficient operation would be a strategic and cultural fit to Planet 13’s philosophy of launching retail operations in other states.
The Las Vegas cannabis operator has outlined a set of goals to achieve after the acquisition deal is complete that will build VidaCann into an even stronger company next year, Scheffler concluded.
According to the purchase agreement, which received unanimous approval from both VidaCann managers and the Planet 13 Board of Directors, the acquisition deal should close in Q1 2024. Upon the deal’s closing, VidaCann will be granted the right to nominate a fifth member to Planet 13’s board of directors. As per the proposed agreement, former VidaCann shareholders will have a 26% pro forma ownership on a fully diluted basis in Planet 13 Holdings.
As these major players in the cannabis industry expand their footprint in different markets across the country, they inevitably create opportunities for other ecosystem actors such as Innovative Industrial Properties Inc. (NYSE: IIPR).
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