Planet 13 has entered into a definitive agreement to acquire Florida-based, vertically integrated cannabis company VidaCann in a transaction valued at $48.9 million, the company announced Monday.
The acquisition includes all 26 VidaCann dispensaries in Florida, as well as the company’s management and operational staff, which will join Planet 13’s team to run the newly acquired Florida operations. It also includes VidaCann’s greenhouse cultivation and processing facility.
The transaction, which is expected to close in the first quarter of 2024, further expands Planet 13’s footprint into the Sunshine State. The company currently has four leased dispensary locations in Florida, along with three dispensaries in Nevada and California, and an upcoming dispensary in Illinois.
“Part of the appeal of this deal is the amazing management team of VidaCann that has built it into the 9th largest Florida cannabis company with limited debt or outside capital. We believe their ability to run lean, efficient operations is a cultural and strategic fit with Planet 13’s company-wide philosophy and operations in other states,” Planet 13 Co-CEO Bob Groesbeck said in a news release. “We laid out a set of goals at the beginning of the year, including using cost-effective M&A to accelerate time to market in Florida. We believe we are executing on our goals and setting Planet 13 up to be a stronger company in 2024.”
Under the purchase agreement, Planet 13 will acquire VidaCann in exchange for 78,461,538 shares of company stock; a $4 million cash payment; and promissory notes to be issued by Planet 13 totaling $5 million, according to the release. In addition, VidaCann will also be granted the right to nominate a fifth board member to Planet 13’s board of directors.
“Acquiring VidaCann would significantly accelerate our time to market and, more importantly, scale in Florida. VidaCann is one of the 10 largest Florida cannabis operators by retail network size, and we believe it has developed a reputation for high product quality and customer service,” Planet 13 Co-CEO Larry Scheffler said in a news release. “We are excited to bring Planet 13’s retail and product brands to Florida consumers after the closing of the proposed transaction, especially with the possibility of upcoming adult-use legislation.”