LAS VEGAS, June 6, 2019 /CNW/ PRESS RELEASE - Planet 13 Holdings Inc., a vertically-integrated Nevada cannabis company, announced today it has signed a binding letter of intent to acquire a cannabis sales license and lease for a dispensary in Santa Ana, California, a part of the Greater Los Angeles Region—home to 13.2 million people—from Newtonian Principles Inc. Planet 13 will pay Newtonian $6 million in cash and 2,039,808 Class A Restricted Shares valued at $4 million upon Planet 13 receiving final state and local regulatory approvals to transfer the operating entity after Newtonian opens its dispensary. As of March 31, 2019, Planet 13 had $20 million in cash, leaving it well capitalized to execute on growth opportunities.
"We are pleased to announce the extension of the successful Planet 13 brand into California," said Larry Scheffler, co-CEO of Planet 13. "Our team considers many factors when determining the feasibility of a Planet 13 style store, with the location being the single most important criteria. After a thorough and deliberate search, we identified this excellent site located three miles from the South Coast Plaza Mall, which hosts 24 million visitors a year and is just a short ten-minute drive from Disneyland, with 18 million visitors per year. Since opening in November 2018, next to the Las Vegas Strip, Planet 13 has successfully created Nevada's top concentrate brand in TRENDI and accounted for ~9.1% of all cannabis dispensary sales in Nevada in March 2019. We look forward to sharing the Planet 13 experience with our customers in California."
"We expect our 40,000 sq. ft. Santa Ana location to be one of the largest cannabis dispensary complexes in the world, behind the Planet 13 Las Vegas SuperStore," said Bob Groesbeck, Co-CEO of Planet 13. "There are approximately 1.5 million people that fly from the Los Angeles basin to Las Vegas every year, with many more making the short four-hour drive. This is a natural brand extension for us. Planet 13 is all about creating a differentiated cannabis experience, blending top-shelf products with unique experiences and entertainment. We intend to introduce our Medizin, TRENDI, and Leaf and Vine brands into the California market, and to replicate the Las Vegas experience with a California feel, creating a must-see destination in Southern California."
Kyle Desmet, president and owner of Newtonian, said, "Planet 13 delivers an unparalleled retail experience with the highest quality products and best customer service in the industry. The Orange County Superstore will provide significant economic benefit to the community and residents of Santa Ana by creating new jobs and increasing tax revenue. We are excited to be part of the Planet 13 vision and positively changing the perception of the industry."
The transaction is expected to close upon obtaining final state and local regulatory approvals to transfer the operating entity after Newtonian opens its dispensary.