HomeMarket NewsSmall CapsPlanet 13's Entry Into Florida Market Puts Trulieve in Competitive Position

Planet 13’s Entry Into Florida Market Puts Trulieve in Competitive Position

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Planet 13 Holdings Inc. PLTH PLNHF has recently announced the acquisition of VidaCann, LLC through a membership interest purchase agreement.

The Significance: Expanding in Florida

By acquiring VidaCann, Planet 13 expects to quickly establish a strong presence and expand its operations in the Florida market. VidaCann is recognized for its excellent product quality, customer service, and extensive retail network, making this acquisition a strategic move for Planet 13.

The acquisition grants Planet 13 ownership of VidaCann’s 26 dispensaries, which represent the 9th largest dispensary network in Florida. Additionally, Planet 13 will gain access to a state-of-the-art processing and analytical lab, along with a fully operational greenhouse cultivation facility that can support the combined dispensary network of Planet 13 and VidaCann in Florida.

Details of the Deal

Planet 13’s acquisition of VidaCann is valued at $48.9 million. The deal includes the issuance of 78,461,538 common shares, a $4 million cash payment, and promissory notes worth $5 million. VidaCann will retain $3 million of bank indebtedness and $1.5 million (or less) of related party notes. Additionally, industry advisor 9496 7346 Quebec Inc. will receive 1,307,698 Base Share Consideration shares at closing.

With this acquisition, Planet 13 emerges as a direct competitor to Trulieve, the leading medical cannabis company in Florida. Trulieve, led by CEO Kim Rivers, has been dominant in the Florida market. Kim Rivers will also be speaking at the upcoming Benzinga Cannabis Capital Conference in Chicago on September 27-28.

Furthermore, Planet 13 will gain control of licensed brands Tikun Olam and Stanley Brothers, which were previously associated with VidaCann. The experienced management team and operational staff of VidaCann will join Planet 13 to oversee the operations in Florida.

Future Outlook and Price Action

Following the completion of the acquisition, former equity holders of VidaCann and the VC Advisor will collectively hold approximately 26.09% pro forma ownership in Planet 13 on a fully diluted basis. At the time of writing, Planet 13’s shares were trading 3.9703% higher at $0.518 per share.

Related News

Secure your spot at the Benzinga Cannabis Capital Conference, the premier event for cannabis investment and branding, before ticket prices increase.

Photo Credit: Iryna Rahalskaya on Shutterstock

Source: Benzinga.com

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