Planet 13 To End The Deal With Newtonian Principles

Planet 13 Holdings Inc. PLTH PLNHF, a Nevada-based developer of cannabis products, announced Monday it's terminating its definitive agreement with Newtonian Principles for the acquisition of its sales license and lease for a dispensary in Santa Ana, California.

The company put an end to the deal "due to unmet conditions in the definitive agreement."

Larry Scheffler, Co-CEO of Planet 13, is convinced the company will expand its cultivation, production, and dispensary operations in the future, emphasizing its strong balance sheet and a positive cash flow business.

"While we are disappointed to be walking away from this expansion, we know that preserving our capital is the right thing to do at this time. We have offered to renegotiate the Acquisition with the Seller to fairly reflect the delays in closing the definitive agreement and the new macro environment," said Scheffler in a statement.

Last month witnessed similar deal cancellations, including the end of Harvest Health & Recreation Inc HARV and Verano Holdings LLC M&A talks. The two companies decided to terminate their agreement announced a year ago, at least for now.

The impact of coronavirus (COVID-19) outbreak on economic prospects is drastic, and it brought inevitable shifts in M&A dynamics, including failing to meet agreed deadlines and timeframes for such activities.

Photo courtesy of Planet 13