Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF) will enter the Medical cannabis market in Florida through the purchase for $ 55 million of a license held by Harvest Health & Recreation Inc. (OTCQX: HRVSF).
The Nevada and Las Vegas-based cannabis company confirmed on Wednesday it had signed a definitive license purchase contract with a subsidiary of Harvest Health & Leisure Inc. OTCQX: HRVSF) under which a newly acquired subsidiary of the company which will be renamed Planet 13 Florida Inc. will purchase a license to operate as a medical marijuana processing center issued by the Florida Department of Health to the seller, and no other assets or liabilities, from the seller for $ 55 million in cash.
Medical Marijuana Processing Centers are vertically integrated and are the only businesses in Florida licensed to distribute medical cannabis. to qualified patients and caregivers. MMTCs are licensed to grow, process, transport and distribute medical marijuana.
In consideration for the license, the company will pay the seller $ 55 million in cash, with an initial deposit of $ 2 million to be delivered by the company and held in escrow by a third-party agent. upon performing an Escrow Agreement as soon as possible after the date hereof. The transaction is subject to certain closing conditions, including the successful closing of the Trulieve Cannabis Corp. arrangement transaction. (OTCQX: TCNNF) / harvest, the Florida Department of Health’s medical marijuana office is using the approval from Planet 13 Florida to acquire the license and other customary closing conditions.
Beacon Securities Limited acts as financial advisor to the Companyy in connection with the acquisition of the License.
“Florida has long been one of our most coveted markets with over 20 million people, 130 million annual visitors, and incredible consumer demand already demonstrated in the medical program,” Larry Scheffler, co-CEO of Planet 13 declared. “It was important for us to enter the market prior to a transition to adult use to put in place the necessary elements to capitalize on this market in the short and long term.”
More recent news from Planet 13:
Planet 13 Revenue Grows 205.2% To $ 32.8 Million In Second Quarter, Reveals Positive Adjusted EBITDA Of $ 7.2 Million
Cannabis Co. Planet 13 records record sales for July
EXCLUSIVE: Dueling robots and levitating product displays arrive at Planet 13’s cannabis supermarket
Planet 13 Reports Strong First Quarter 2021 Financial Results Ahead of California Debut
Shares of Planet 13 were trading up 2.61% to $ 4.99 per share as of this writing on Wednesday morning.