Planet 13’s Strategic Move: Acquires VidaCann to Boost its Footprint in Florida

LAS VEGAS, NV — In a strategic move to bolster its presence in the booming Florida cannabis market, multi-state vertically integrated cannabis company, Planet 13 Holdings Inc., announced a membership interest purchase agreement to take over all ownership interests of VidaCann, LLC.

VidaCann’s Role in the Market

VidaCann, primarily based in Florida, is a key player in the cultivation, processing, storage, transport, and dispensing of cannabis. Its substantial presence, with a network of 26 dispensaries, places it as the 9th largest in the state.

Transaction Highlights

1. Retail Network Expansion: This acquisition not only increases Planet 13’s retail footprint but brings in VidaCann’s retail expertise. Combined with Planet 13’s locations in Nevada, California, and its upcoming Illinois venture, the potential for revenue growth seems promising.
2. Cultivation & Processing: VidaCann brings to the table a greenhouse cultivation facility, equipped with cutting-edge processing and analytical labs. This facility can potentially cater to more than double the combined dispensary network of both companies in Florida.
3. Diverse Brand Portfolio: A merger of VidaCann’s well-regarded brands like Tikun Olam and Stanley Brothers with Planet 13’s brand portfolio results in a versatile range catering to various consumer needs.
4. Experienced Leadership: VidaCann’s experienced leadership and operational staff will be onboarded by Planet 13 to oversee the Florida operations. Their reputation for efficiency and cost management bodes well for the combined entity.

Larry Scheffler, Co-CEO of Planet 13, expressed enthusiasm for the acquisition. He emphasized the speed and scale benefits the merger offers in the Florida market, particularly in light of possible upcoming adult-use legislation.

Bob Groesbeck, Co-CEO of Planet 13, lauded VidaCann’s lean and efficient operation. He believes this aligns well with Planet 13’s overall company philosophy and sees this acquisition as a move setting Planet 13 up for an even more robust 2024.

The Deal

As per the Purchase Agreement:

• Planet 13 will pay the sellers in three forms: 78,461,538 common shares, a cash payment of US$4,000,000, and promissory notes of US$5,000,000.
• The total deal value, based on recent trading data, is pegged at approximately US$48.9 million.

The Purchase Agreement also entails several conditions including approval from relevant cannabis regulators, sale of the Company’s Medical Marijuana Treatment Center license, and more. Expected to close in early 2024, post-acquisition, VidaCann’s former equityholders will own about 26.09% of Planet 13.

The Board of Planet 13 and VidaCann’s managers have unanimously approved this proposed transaction.

Advisors on the Deal

Planet 13’s advisory team comprises Canaccord Genuity Corp., Cozen O’Connor P.C., Wildeboer Dellelce LLP, and a fairness opinion from Evans & Evans. On the flip side, 9496 7346 Quebec Inc. and Cobb Cole, P.A. assisted VidaCann.

About the Companies

Planet 13 Holdings, with operations in Las Vegas and Orange County, California, is a major name in the cannabis space. With a vertically integrated structure, it’s known for its world-class dispensary operations and innovative cannabis products.

VidaCann, with its roots deep in Florida, boasts of 26 dispensing locations across the state. Its founding members include Loop’s Nursery and Greenhouses, which have been operational since 1949, providing invaluable horticulture experience.