In a move that signals a strong belief in the future of Florida’s cannabis market, Las Vegas-based cannabis company Planet 13 has announced a significant shift in its operations within the state. The company recently received final approval from the Florida Office of Medical Marijuana Use (OMMU) for the sale of its subsidiary, Planet 13 Florida, Inc., and for the acquisition of VidaCann, LLC. This development is particularly timely, as Florida gears up for a pivotal vote on the legalization of recreational cannabis sales this November.
A Strategic Shift in the Sunshine State?
In a press release, announcing Planet 13’s move to sell its Florida license for a chance to acquire VidaCann indicates the company’s interest in exploring opportunities in a promising market. VidaCann, with over 20 medical cannabis dispensaries, roughly represents 4% of Florida’s medical cannabis retail footprint reports the Cannabis Business Times.
Unlike Planet 13 Florida, which has no dispensaries in the state, VidaCann brings a well-established operation, encompassing cultivation, processing, storage, and transportation, under its Medical Marijuana Treatment Center License, according to OMMU.
The transaction, valued at approximately $49 million, involves the sale of all issued and outstanding shares of Planet 13 Florida’s common stock to SGW FL Enterprises LLC for a cash payment of about $9 million due at closing.
Timing Is Everything
The timing of these transactions could not be more opportune. With Florida voters set to decide on an adult-use cannabis legalization amendment this November, Planet 13 is positioning itself as a key player in what could potentially be a vastly expanded market.
Co-CEO Larry Scheffler highlighted the strategic importance of this acquisition, noting that VidaCann is among the ten largest Florida cannabis operators by retail network size. Coupled with a reputation for high product quality and customer service, Planet 13’s ambition to scale in the Sunshine State appears well-founded.
“As we await the voters’ decision on adult-use cannabis legalization, this acquisition promises to significantly accelerate our time to market and our ability to scale in Florida,” Scheffler remarked, emphasizing the potential growth opportunities that lie ahead.
A Look Ahead
With the final regulatory hurdles now cleared, Planet 13 expects to close the transaction by May 31, 2024. This anticipation is not just about business growth; it’s about being at the forefront of providing high-quality cannabis products and experiences to Florida’s consumers—whether for medicinal or, potentially, recreational use.
This acquisition sets a precedent for strategic movement within the cannabis industry, particularly in states poised on the brink of significant regulatory shifts. For enthusiasts and observers alike, the unfolding of Planet 13’s endeavors in Florida will undoubtedly be a key storyline to follow as the state navigates the waters of potential legalization and market expansion.
