LAS VEGAS: Planet 13 Holdings Inc., a leading vertically-integrated Nevada cannabis company, has acquired cannabis inventory, equipment and tenant improvements, and subject to regulatory approval will acquire the Nevada cannabis licenses at a 45,000 square foot indoor cultivation and production facility in Las Vegas from West Coast Development Nevada LLC.
Planet 13 is paying $1.156 million for the cannabis inventory, and $3 million for the operating assets, licenses, equipment and tenant improvements which payment is comprised of $0.5million in cash and $2.5 million of common shares in the capital of Planet 13.
Concurrent with the signing of the Asset Purchase Agreement, Rx Land LLC, an entity owned by Planet 13’s Co-CEOs, separately acquired the facility for $3.3 million. On the Second Closing, Planet 13 will enter into a lease agreement with RX Land for the Facility.
“We’ve been pursuing additional premium indoor cultivation to expand our Medizin flower line, including our proprietary strain Chloe. Medizin sells out each harvest days after it hits the Super Store shelves. This agreement allows us to add 25,000 square feet of indoor cultivation immediately, with the ability to expand up to 45,000 square feet in the future,” said Larry Scheffler, Co-CEO of Planet 13.
“We look forward to expanding our supply and offering it in 3rd party dispensaries for the first time.”
“In another example of Planet 13’s patience and ability to execute for our shareholders, we’ve identified an opportunity to assume control of a fully built out indoor cultivation facility at a price that will be accretive,” said Bob Groesbeck, Co-CEO of Planet 13.
“Larry and I are paying $3.3 million of our own money to purchase the land and building, through RX Land, to preserve Planet 13’s cash while offering an ongoing lease well below the rate set by cannabis REITS.
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