The sale of VidaCann to Planet 13 Holdings (CSE: PLTH) has finally closed, nine months after it was originally announced. The Florida-based operator was acquired for a combination of cash and shares, which thanks to the recent run in cannabis names, resulted in the sellers getting more in compensation than they had originally signed for.
Originally announced in August 2023, VidaCann had agreed to be sold off for US$48.9 million in total consideration, with payment to consist of US$4.0 million in cash, a US$5.0 million promissory note, and 78.5 million shares. The agreed to sales price was noticeably less than half of the US$120 million the company was to be sold to Cresco Labs (CSE: CL) for back in 2019, before changing market dynamics led to that sale falling through.
A rise in the value of Planet 13’s shares in recent months and a slight increase in the amount of shares to be issued under the transaction to 81.9 million however saw the value of the transaction rise to US$63.4 million upon closing. Notably the Florida-based operator had US$3.0 million of bank indebtedness at the time of closing, while owing related parties roughly US$1.5 million in the form of notes.
VidaCann’s operations are said to be the ninth largest in the state of Florida, with 26 dispensaries in operation along with a fully operational greenhouse cultivation facility that also contains a processing and analytical lab.
Planet 13 has said that post-closing it intends to introduce indoor cultivation to diversify product offerings, while at the same time bringing its Nevada brands to the region. Further stores are expected to be added to the Florida network, including the potential for superstores that would be placed in tier-one tourist destinations if adult-use legislation is to pass in the state.
Planet 13 last traded at $0.82 on the CSE.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
