The Nevada, Las Vegas-based cannabis company confirmed Wednesday it has signed a definitive license purchase agreement with a subsidiary of Harvest Health & Recreation Inc. OTCQX: HRVSF) under which a newly acquired subsidiary of the Company to be renamed Planet 13 Florida Inc. will purchase a license to operate as a Medical Marijuana Treatment 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.
Licensed Medical Marijuana Treatment Centers are vertically integrated and are the only businesses in Florida authorized to dispense medical marijuana cannabis to qualified patients and caregivers. MMTCs are authorized to cultivate, process, transport and dispense medical marijuana.
As consideration for the License, the Company will pay $55 million in cash to the seller, with an initial deposit therefrom of $2 million to be delivered by the company and held in escrow by a third party agent upon execution of an escrow agreement as promptly as possible after the date hereof. The transaction is subject to certain closing conditions including the successful close of the Trulieve Cannabis Corp. (OTCQX:TCNNF) /Harvest arrangement transaction, the Florida Department of Health's Office of Medical Marijuana Use approval for Planet 13 Florida to acquire the license and other customary closing conditions.
Beacon Securities Limited is acting as financial advisor to the Company in connection with the License acquisition.
"Florida has long been one of our most coveted markets with over 20 million residents, 130 million annual visitors and incredible consumer demand already demonstrated in the medical program,” Larry Scheffler, co-CEO of Planet 13 stated. “It was important for us to enter the market prior to a transition to adult-use to put the pieces in place to capitalize on this market in both the short and long term.”
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Planet 13’s shares were trading 2.61% higher at $4.99 per share at the time of writing Wednesday morning.