Planet 13 Wraps Up VidaCann Acquisition To Enter Florida Market With $63.4M Deal And 26 Cannabis Dispensaries

Las Vegas-based cannabis giant, Planet 13 Holdings Inc. PLNH, has successfully concluded its acquisition of Florida’s VidaCann, a prominent player in the state’s medical marijuana market. The acquisition received approval from the Florida Office of Medical Marijuana Use in April. This represents a significant expansion as recreational cannabis legalization in Florida will be decided in the November 2024 ballot.

Strategic Deal Structure

As part of the deal, according to a press release shared with Benzinga, Planet 13 will acquire VidaCann from its previous owners in exchange for 81,872,252 shares of Planet 13’s common stock, approximately $4 million in cash and $5 million in promissory notes. Based on the closing price of Planet 13’s common stock as of May 9, 2024, the total deal, previously estimated at $48.9 million was finally valued at approximately $63.4 million.

Integration and Expansion Plans

Bob Groesbeck, co-CEO of Planet 13, expressed excitement about the acquisition. "This acquisition marks an important moment for our Company, as we leverage VidaCann's established footprint and reputation, adding 26 stores to our portfolio to enhance our retail offering in Florida. We look forward to integrating our award-winning brands and retail expertise to drive growth and deliver unparalleled experiences to our customers."

This addition of VidaCann’s 26 dispensaries significantly bolsters Planet 13’s retail presence in the Florida cannabis marker.

Driving Growth and Innovation

Planet 13 will enhance VidaCann’s success by introducing indoor cultivation techniques to diversify product offerings. The company will also bring its award-winning brands from Nevada to Florida, with a focus on improving per-store economics and revenue generation.

Looking ahead, Planet 13 intends to selectively expand VidaCann’s network of dispensaries and potentially introduce SuperStores in key tourist destinations, pending adult-use legislation.

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