Planet 13 To Renegotiate License Acquisition With Newtonian

The deal between Planet 13 Holdings PLTH PLNHF and Newtonian Principles is back on, as both companies renegotiate terms of a previously cancelled agreement.

Nevada-based Planet 13 will buy the sales license and lease for a Newtonian dispensary in Santa Ana, California.

It will pay Newtonian $800,000 in cash resulting in a total cash purchase price of $1 million and 3,940,932 Class A Restricted Shares valued at $4 million.

Newtonian will retain the $200,000 deposit that Planet 13 paid.

The renegotiated deal included a 25% lease reduction with the landlord, effective during construction and until opening. This compares to the initial agreement where Planet 13 would have paid an additional $5.8 million in cash and 2,039,808 Class A Restricted Shares in the capital of the Company valued at $4 million for the acquisition.

"We've evaluated hundreds of locations in California and continue to believe that our Santa Ana location is the best suited for a Planet 13 style dispensary," said Planet 13 CEO Bob Groesbeck. "While we can't forecast how COVID-19 might affect our timeline, we've negotiated an agreement that reduces the upfront capital invested, gives us control over the timing of fixed costs and provides flexibility on dispensary buildout. We de-risked the transaction substantially while securing the next stage of growth for Planet 13."

Photo courtesy of Planet 13