Planet 13 Holdings announced that its wholly owned subsidiary MM Development Company will acquire all assets required to operate a 3,158-square-foot dispensary located in Las Vegas, Nevada, including cannabis and non-cannabis inventory and other items along with a medical and recreational license from Exhale Brands Nevada.
Planet 13 is paying $6.9 million plus the value of the cannabis inventory, which payment is comprised of $4 million in cash payable at time of closing and $2.9 million (plus the value of the cannabis inventory at closing) payable in the form of a secured promissory note due a year from closing and secured by the assets being acquired. The acquisition is expected to close once all closing conditions have been satisfied, including receipt of all required regulatory approvals including approval from the Nevada Cannabis Compliance Board with respect to the transfer of the license and the approval of the transfer of the business license from Clark County.
“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. Their location and more local focus customer base complements our SuperStore and other Nevada neighborhood store,” said Bob Groesbeck, Co-CEO of Planet 13. “Adding more dispensaries in Nevada allows us to benefit from increased verticality, expand our branded market share position, and share fixed costs across dispensaries. We are excited to integrate and increase the profitability of this dispensary through increased verticalization and shared services.”
The 3,158-square-foot dispensary, operating as Exhale, has a drive-through and is located at 4310 W Flamingo Rd, Las Vegas, Nevada.
