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Las Vegas-headquartered Planet 13 Holdings on Monday announced a $48.9 million deal to acquire Florida-based VidaCann’s vertically integrated marijuana operation, which includes 26 medical cannabis dispensaries.
The stock, cash and debt deal, which was unanimously approved by the boards of both companies, is expected to close before March, according to a news release.
The deal also includes a fully operational greenhouse cultivation facility, processing and analytical lab as well as three product lines – Tikun Olam, Stanley Brothers and VidaCann’s house brand.
“Acquiring VidaCann would significantly accelerate our time to market and, more importantly, scale in Florida,” Planet 13 co-CEO Larry Scheffler said in a statement.
“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.”
Besides its Nevada footprint, Planet 13 has operations in California and an upcoming retail outlet in Illinois, according to the news release.
The sale appears to be a bargain – or perhaps a sign of the times – based on earlier valuations of VidaCann.
In March 2019, vertically integrated cannabis company Cresco Labs announced an agreement to acquire VidaCann in a $120 million cash-and-stock deal.
Citing cash concerns, Chicago-based Cresco backed out of the deal eight months later.
When the Planet 13 transaction closes, former VidaCann equity holders will have a 26% pro forma ownership in Planet 13 on a fully diluted basis, according to the proposed agreement.
News of the VidaCann deal boosted the price of Planet 13 shares (PLNHF) by 5.3% on the U.S. over-the-counter market with a cap of nearly $119 million.
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