- Planet 13 Holdings (CSE:PLTH) has terminated an agreement to acquire a cannabis sales license and lease for a Californian dispensary
- The company terminated the deal with Newtonian Principles because of unmet conditions in the agreement
- Planet 13 had agreed to issue C$9.42 million in cash and 2,039,808 Class A Restricted Shares to Newtonian
- The acquisition would have marked the company’s foray into the well-established Californian cannabis market
- Planet 13 Holdings (PLTH) is down 1.43 per cent, and trading for $1.38 per share
Planet 13 Holdings (CSE:PLTH) has terminated an agreement to acquire a cannabis sales license and lease for a Californian dispensary.
The company currently holds six licenses in the Nevada market, with expansive cultivation, production, and retail operations. Its flagship 112,000 square foot store in Las Vegas is the world’s largest cannabis entertainment and retail complex.
Planet 13 announced its intention to acquire the Santa Ana license and dispensary lease from Newtonian Principles in June 2019.
The 40,000 square foot facility would have been one of the largest cannabis complexes in the world. It also would have been Planet 13’s first foray into the well-established Californian cannabis market.
At the time, Planet 13’s Co-CEO, Bob Groesbeck, said that the acquisition was “a natural brand extension.” This was due to the frequent commutes between Las Vegas and Los Angeles.
However, the deal has now fallen through, with Planet 13 citing “unmet conditions in the definitive agreement.”
Planet 13’s other Co-CEO, Larry Scheffler, expressed disappointment at walking away from the expansion, but said that preserving capital is the right thing to do.
“We have offered to renegotiate the acquisition with the seller, to fairly reflect the delays in closing the definitive agreement and the new macro environment.
“As one of the few operators with a strong balance sheet and a cashflow positive business, we will have plenty of opportunities to expand the Planet13 brand in the future,” he added.
Had the deal gone through, Planet 13 would have issued Newtonian C$9.42 million cash and 2,039,808 Class A Restricted Shares. The Class A Restricted Shares would have been valued at $6.28 million.
Planet 13 Holdings (PLTH) is down 1.43 per cent, and trading for $1.38 per share at 1:51pm EST.