Planet 13 To Acquire Next Green Wave For $70M: California Indoor Cannabis And Pheno-Hunting

Planet 13 Holdings Inc. PLTH PLNHF and Next Green Wave Holdings Inc. NGW NXGWF have entered into a definitive arrangement agreement under which the former will acquire the latter for total consideration of approximately C$91 million ($70.3 million).

Shareholders of Next Green Wave will receive 0.1081 of a common share of Planet 13 (subject to calculations as described below, and $0.0001 in cash) for each NGW share held. Based on Planet 13’s 10-day volume weighted average price and the exchange ratio as of December 17, 2021, the implied deal price per NGW Share is C$0.465, representing a premium of approximately 52% to the closing price and 44% to the 10-day VWAP of NGW shares on the Canadian Securities Exchange.

After giving effect to the transaction NGW shareholders will hold approximately 9.2% ownership in the pro-forma company on a fully-diluted basis.

“Today’s announcement is an extension of the strategy we’ve laid out for investors of adding cultivation and production in California to vertically integrate and bring our highly popular brands into the state. We are methodically expanding our footprint to drive topline growth and improved profitability,” said Bob Groesbeck, co-CEO and co-founder of Planet 13. “We’ve been incredibly impressed by the Next Green Wave team and their ability to generate revenue and Adjusted EBITDA based on the quality of their cultivation and manufacturing in this very competitive market.”

“This is an exciting day for Next Green Wave shareholders. Planet 13 has proven its ability to run incredibly productive retail locations and create manufactured products that command a significant share of sales in their home state of Nevada,” added Mike Jennings, CEO of Next Green Wave. “They are a perfect fit for Next Green Wave, and being a part of their attractive growth profile and expansion in Illinois and Florida is the correct next step for NGW.”