Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNH) announced plans to acquire a Las Vegas dispensary for $6.9 million plus inventory value, extending its reach in the Silver State.
Planet 13’s subsidiary, MM Development Company, Inc., entered the asset purchase agreement with Exhale Brands Nevada LLC for a 3,100-square-foot dispensary just west of the Las Vegas Strip, according to a press release. The deal includes medical and recreational licenses, inventory and other operational assets, the company said.
“Increasing our scale, operating leverage and verticality in Nevada is one of the most cost-efficient levers for profitable growth we have, and this dispensary couldn’t be a better fit for our portfolio,” Planet 13 Co-CEO Bob Groesbeck said in a statement.
The purchase price is set at $6.9 million plus the value of cannabis inventory. Planet 13 will pay $4 million in cash at closing, with the remainder covered by a secured promissory note due in one year. The dispensary, located at 4310 W. Flamingo Rd., a major east-west thoroughfare in Las Vegas, features a drive-through service.
The acquisition is pending regulatory approvals, including transfer of cannabis and business licenses.
Planet 13, known for operating the largest cannabis dispensary in the U.S. near the central tourist corridor in Las Vegas, sees the deal as complementary to its existing operations there.
“Their location and more local focus customer base complements our SuperStore and other Nevada neighborhood store,” Groesbeck noted.
Groesbeck expects the deal to enhance its vertical model in Nevada and expand its branded market share. He also mentioned a goal to “share fixed costs across dispensaries.” Planet 13 currently operates 31 dispensaries nationwide, including 27 it snapped up in Florida from its acquisition of VidaCann.
The Exhale dispensary, currently operating under that brand name, will be integrated into Planet 13’s existing operations, though the company hasn’t yet signaled specific plans for rebranding or operational changes.
Regardless, Planet 13 has been busy expanding. Apart from the Florida acquisition, it recently opened its first consumption lounge in Las Vegas after staking a claim in the Illinois market with a 4,000-square-foot dispensary in the Chicago metro area last year.
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