Gov. Rescheduling Suggestion Lights Up Florida's Cannabis Consolidation: Planet 13 & VidaCann In Spotlight

Planet 13 Holdings Inc. PLNHF PLTH is aiming to acquire VidaCann, which operates 26 dispensaries and holds the ninth-largest retail network in Florida.

While recreational legalization is the anticipated catalyst for further market growth, Florida's medical marijuana market is already substantial, surpassing $1.4 billion, with strong volume growth exceeding 30%, and stabilizing prices after a period of deflation.

The latest report by Zuanic & Associates (Z&A) on the Florida market highlights that the recent increase in stock prices, driven by the HHS rescheduling news, indicates a looming wave of consolidation in the cannabis market.

“With stock prices up (...) we would expect more consolidation. Planet 13 announced plans to buy VidaCann (the 9th largest retail network in the state, with 26 stores(...). In terms of a retail network with ~20 stores, the only independent operators would be now Cansortium (33 stores) and Green Dragon (33),” 's Z&APablo Zuanic wrote in his latest report.

Join us at the Benzinga Cannabis Capital Conference in Chicago on September 27-28 and meet Pablo Zuanic for exclusive insights into his 2024 stock market perspective!

Planet 13's Strategic Acquisition of VidaCann

"We anticipate more Florida market consolidation, pending recreational legalization uncertainties. The state Supreme Court has until April to weigh in on the ballot proposal. If no response, the ballot proceeds. Success depends on voters reaching a 60% threshold; the industry is likely to invest heavily for a 'yes' vote. Recent stock value increases suggest sellers may move quickly before April," Zuanic noted.

This transaction is expected to close by January 2024, making Planet 13 a significant player in Florida's cannabis market.

The deal involves issuing 78.5 million shares along with $9 million in cash and promissory notes, valuing VidaCann at approximately $49 million.

The acquisition includes a fully operational greenhouse cultivation facility and an advanced processing and analytical lab, poised to support a substantial expansion of the combined dispensary network. VidaCann's brand portfolio, including well-regarded names like Tikun Olam and Stanley Brothers, complements Planet 13's existing offerings.

Furthermore, VidaCann's experienced management team will continue to oversee Florida operations post-acquisition.

Planet 13 plans to divest a 20-acre piece of land and a paper license, making it an attractive opportunity for potential entrants into the Florida market.

Don't miss the opportunity to engage with Pablo Zuanic at the Benzinga Cannabis Capital Conference in Chicago this Sept 27-28, where you can personally inquire about his outlook on the 2024 stock market.

VidaCann's Performance

  • According to official data, as of September 8, 2023, VidaCann had a total of 26 operational stores, with the latest one opened in late September 2022. For context, this marks an increase from their store count of 24 at the close of 2021 and 18 after 2020.
  • In the second quarter of 2023, VidaCann held a 1.6% volume share in both the flower and non-flower categories.
  • Over 13 weeks ending on September 8, flower volumes saw a significant year-on-year increase of 44%, while non-flower volumes rose by 16%.
  • Specifically, flower volumes experienced a 74% year-on-year increase in the second quarter and a 43% increase in the first quarter.
  • In contrast, non-flower volumes showed a 6% increase in the second quarter and a 9% decrease in the first quarter.
  • VidaCann's sales per store amounted to $0.85 million in the flower category, compared to an average of $1.83 million (excluding Trulieve TCNNF) or $2.43 million (including Trulieve).
  • For non-flower, sales per store reached $2.48 million, as opposed to an average of $5.57 million (excluding Trulieve) or $7.18 million (including Trulieve).

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this September 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo by Towfiqu barbhuiya on Unsplash

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