Planet 13 Enters Florida Medical Marijuana Market Via $55M Purchase Of Harvest Health's License

Vertically integrated cannabis company Planet 13 Holdings Inc. PLTH PLNHF has completed its previously announced purchase of a license issued by the Florida Department of Health to operate as a Medical Marijuana Treatment Center in the Sunshine State.

Based in Las Vegas, the company purchased the license previously held by Harvest Health & Recreation Inc. HARVHRVSF, for $55 million in cash through its subsidiary Planet 13 Florida Inc.

"We are excited to get started building out our footprint in Florida," Robert Groesbeck, co-CEO of Planet 13 said Friday. "Initially, our focus will be on a network of high-performing neighborhood stores modelled off our successful Medizin dispensary along with cultivation and production to bring our portfolio of top-selling products to Florida. As Florida gets closer to legalizing adult-use sales, we will start on our world-famous SuperStores in high traffic tourist destinations throughout the state."

The closing of the transaction was subject to certain conditions, including the successful close of Trulieve Cannabis Corp. TRUL TCNNF and Harvest Health's merger, which was confirmed on Friday as well as the Florida Department of Health's Medical Marijuana Use approval for Planet 13 Florida to acquire the license and other customary closing conditions.

Licensed Medical Marijuana Treatment Centers are granted rights to cultivate, process, transport and dispense medical marijuana to qualified patients and caregivers.

Price Action

Planet 13's shares traded 8.73% higher at $4.7843 per share after the market close on Thursday.

Photo: Courtesy of Add Weed on Unsplash