The company’s sale of its Florida license is a closing condition of the acquisition agreement with VidaCann, which also owns a Florida license.
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Las Vegas-based multistate cannabis operator Planet 13 Holdings Inc. is one step closer to acquiring 26 medical cannabis dispensaries in Florida after receiving approval to sell its own license in the Sunshine State.
The vertically integrated company announced April 29 that it was given the green light for the proposed sale of subsidiary Planet 13 Florida Inc., after it entered into a stock purchase agreement in January to sell all of the issued and outstanding shares of Planet 13 Florida’s common stock to SGW FL Enterprises LLC for a cash payment of approximately $9 million due at closing.
The sale of Planet 13 Florida’s Medical Marijuana Treatment Center (MMTC) license to SGW FL is a closing condition to Planet 13’s roughly $49 million deal to acquire VidaCann, which also owns an MMTC license from the Florida Office of Medical Marijuana Use (OMMU).
While Planet 13 Florida has zero dispensaries in Florida, VidaCann owns 26 retail facilities and is engaged in cultivating, processing, storing and transporting under its MMTC license, according to OMMU. The 26 dispensaries represent 4.1% of Florida’s medical cannabis retail footprint.
When Planet 13 first announced its proposed acquisition of VidaCann in August 2023, co-CEO Larry Scheffler said the deal would significantly accelerate the company’s time to market and its ability to scale in the Sunshine State, where voters will be deciding an adult-use cannabis legalization amendment this November.
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“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,”
Scheffler said in a press release. “We are excited to bring Planet 13’s retail and product brands to Florida consumers after the closing of the proposed transaction, especially with the possibility of upcoming adult-use legislation.”
The OMMU approvals for Plant 13 Florida’s sale to SGW FL and Planet 13’s acquisition of VidaCann are the final regulatory approvals required for the transactions, according to Planet 13. The company extended the end date of the VidaCann deal to May 31, 2024, and currently expects to close the transaction by then.
