Planet 13 Debuts In California, Acquires Newtonian's Dispensary In Santa Ana
The Las Vegas, Nevada-based integrated cannabis company, obtained Newtonian's cannabis sales license, a leasehold of 30 years on Santa Ana's dispensary in California, and specific assets from Warner Management Group LLC.
Under the acquisition deal, Planet 13 paid $1 million in cash and terminated a buildout loan to Warner. In exchange for the Newtonian shares, the company has issued 3,940,932 Class A Restricted shares worth $4 million.
In April, Planet 13 reported it's terminating the definitive agreement with the Newtonian due to "unmet conditions." A week later, the two companies decided to renegotiate the terms of the canceled deal.
"We've examined hundreds of locations and are confident in our ability to replicate the SuperStore experience at this location, introducing new customers to the Planet 13 brand," said Planet 13 co-CEO Bob Groesbeck in s statement.
The company secured $6 million in capital expenditures for dispensary's launching and handling consequences of coronavirus outbreak on the business, added Groesbeck.
"At this time, due to COVID-19, we are not putting a timeline on the opening of the dispensary."
In response to the health crisis and the closing of all adult-use dispensaries, the company has broadened its delivery capacities in March.
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