Planet 13 Completes Acquisition of Florida Cannabis License

Rhea-AI Summary

Planet 13 Holdings has finalized the acquisition of a medical marijuana treatment center license in Florida for US$55 million. This strategic purchase aims to expand their operational footprint in Florida, focusing on developing high-performing neighborhood stores and cultivating cannabis products. The move positions Planet 13 advantageously as Florida approaches potential legalization of adult-use cannabis. Currently, there are only 22 license holders permitted to dispense medical marijuana in Florida, presenting a unique opportunity for growth.

Positive

• Acquisition of Florida medical marijuana treatment center license for US$55 million enhances market presence.
• Focus on expanding neighborhood stores and cultivation aligns with Florida's growing cannabis market.
• Potential for revenue growth as Florida nears adult-use legalization.

Negative

• High acquisition cost of US$55 million may impose financial strain.
• Risks associated with navigating the regulatory landscape in Florida.
• Forward-looking statements indicate uncertainties regarding future operations and market conditions.

LAS VEGAS, NV / ACCESSWIRE / October 1, 2021 / Planet 13 Holdings Inc. (CSE:PLTH) (OTCQX:PLNHF) ("Planet 13" or the "Company"), a leading vertically-integrated national cannabis company, announces that through its subsidiary Planet 13 Florida Inc. it has completed the previously announced purchase of a license issued by the Florida Department of Health to operate as a Medical Marijuana Treatment Center (the "License") in the State of Florida for US$55 million in cash.

"We are excited to get started building out our footprint in Florida. Initially, our focus will be on a network of high performing neighborhood stores modelled off our successful Medizin dispensary along with cultivation and production to bring our portfolio of top-selling products to Florida," said Robert Groesbeck, Co-CEO of Planet 13. "As Florida gets closer to legalizing adult-use sales, we will start on our world-famous SuperStores in high traffic tourist destinations throughout the state."

Licensed Medical Marijuana Treatment Centers ("MMTCs") are vertically integrated and 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 of September 24, 2021, there were 22 companies with MMTC licenses with 370 dispensing locations across Florida. License holders are not subject to restrictions on the number of dispensaries that may be opened or on the number or size of cultivation and processing facilities they may operate.

About Planet 13
Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations in Las Vegas and dispensary operations in Orange County, California. Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products. Planet 13's shares trade on the Canadian Stock Exchange (CSE) under the symbol PLTH and OTCQX under the symbol PLNHF.

Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward looking-statements include but are not limited to, statements regarding getting started building out the Company's footprint in Florida, an initial focus on a network of high performing neighborhood stores modelled off the Company's Medizin dispensary along with cultivation and production to bring the Company's portfolio of top-selling products to Florida, getting close to legalizing adult use in Florida, and starting on the Company's world-famous SuperStores in high traffic tourist destinations.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the Company's ability to locate and secure suitable locations for its planned cultivation and retail buildout; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; the diversion of management time on the License acquisition; risks associated with COVID-19 and other infectious diseases presenting as major health issues; fluctuations in securities markets; expectations regarding the size of the Florida cannabis market and changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in the State of Florida; and employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States through licensed subsidiary entities in states that have legalized marijuana operations, however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company's business, including COVID-19, are contained under the heading "Risk Factors" and elsewhere in the Company's annual information form dated April 5, 2021 filed on its issuer profile on SEDAR at www.sedar.com.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For further inquiries, please contact:
LodeRock Advisors Inc., Planet 13 Investor Relations
mark.kuindersma@loderockadvisors.com

Robert Groesbeck or Larry Scheffler
Co-Chief Executive Officers
ir@planet13lasvegas.com

SOURCE: Planet 13 Holdings

View source version on accesswire.com:
https://www.accesswire.com/666344/Planet-13-Completes-Acquisition-of-Florida-Cannabis-License

FAQ

What is the significance of Planet 13's acquisition of the Florida cannabis license?

The acquisition allows Planet 13 to expand its footprint in Florida's cannabis market and prepare for potential adult-use legalization.

How much did Planet 13 pay for the Florida medical marijuana treatment center license?

Planet 13 acquired the license for US$55 million in cash.

What are the future plans for Planet 13 in Florida after acquiring the license?

Planet 13 plans to build a network of neighborhood stores and cultivation facilities, as well as establish SuperStores in tourist areas.

What challenges could Planet 13 face in its Florida operations?

Challenges may include regulatory compliance, market competition, and the financial implications of the acquisition.