The State of Florida continues to be a big ticket market for cannabis firms. Planet 13 Holdings (CSE: PLTH) this morning announced that it will be the latest public firm to enter the market, however it doesn’t come cheap. The company has managed to enter an arrangement to acquire the license currently held by Harvest Health (CSE: HARV) within the state.
The acquisition of the license by the company is a result of the merger that is to be completed between Harvest Health and Trulieve Cannabis (CSE: TRUL). Planet 13 has agreed to shell out a whopping US$55.0 million in cash for the license, with the purchase including no other assets or liabilities. Naturally, the acquisition is contingent on the closing of the Harvest Health and Trulieve merger.
Once approved by the Florida Department of Health, and the closing of the aforementioned merger, Planet 13 intends to tackle the market by focusing on building a “network of neighborhood stores in priority metro areas to support future SuperStores.” The company named Miami and Orlando specifically as target markets for such superstores, with the firm having to first focus on developing out its cultivation assets in the state.
“It was important for us to enter the market prior to a transition to adult-use to put the pieces in place to capitalize on this market in both the short and long term,” commented Larry Sheffler, co-CEO of the company.
An initial deposit of US$2.0 million has been paid by the company, with the remaining US$53.0 million to be paid upon closing conditions being met. A timeline for the final closing was not provided.
Planet 13 Holdings last traded at $6.13 on the CSE.
Information for this briefing was found via Sedar and Planet 13 Holdings. 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.
