Planet 13 Holdings Announce Florida Expansion Plans with $50 Million Acquisition of VidaCann

Planet 13 Holdings, based in Las Vegas, has unveiled a substantial $48.9 million agreement to acquire the comprehensive cannabis enterprise of VidaCann, a Florida-based company. This acquisition encompasses a network of 26 medical cannabis dispensaries, marking a significant stride in the cannabis industry.

The deal, composed of stock, cash, and debt components, has garnered unanimous approval from the governing boards of both firms. As per an official press release, the transaction is set to conclude by March. The arrangement encompasses not only a fully operational greenhouse cultivation facility but also a processing and analytical lab. Additionally, it includes access to three distinct product lines: Tikun Olam, Stanley Brothers, and VidaCann’s in-house brand.

Co-CEO of Planet 13, Larry Scheffler, noted in a statement, “Securing VidaCann would not only hasten our entry into the market but, more importantly, grant us substantial expansion opportunities within Florida.” Scheffler underscored VidaCann’s stature as one of Florida’s ten most prominent cannabis operators in terms of retail network size. The company’s reputation for top-tier product quality and customer service further reinforces its appeal.

Planet 13, which already has a presence in Nevada, California, and soon, Illinois, is positioning itself to capitalize on Florida’s cannabis landscape through this strategic acquisition.

The terms of this sale carry intriguing implications, potentially reflecting changing dynamics in the industry. VidaCann’s earlier valuations paint an interesting picture. In a cash-and-stock transaction, vertically integrated cannabis firm Cresco Labs had proposed a $120 million acquisition of VidaCann in March 2019. However, this deal faltered eight months later due to financial concerns within Cresco’s camp.

Upon the successful culmination of the Planet 13-VidaCann deal, former equity holders of VidaCann are projected to hold a 26% ownership stake in Planet 13, considering fully diluted figures. This allocation highlights the shared vision of both entities in the burgeoning cannabis sector.

The market responded favorably to news of the VidaCann acquisition, resulting in a 5.3% uptick in Planet 13 shares (PLNHF) on the U.S. over-the-counter market. This increase translated to a market capitalization of nearly $119 million, underscoring the market’s optimism about the strategic move.