February 7, 2023 – Planet 13 Holdings Inc. (CSE:PLTH)(OTCQB:PLNHF) (“Planet 13” or the “Company“), a leading vertically-integrated multi-state cannabis company, announced today that Planet 13 has exercised and closed its option to purchase the remaining 51% in Planet 13 Illinois, LLC (“Planet 13 Illinois”) from Frank Cowan for US$866,250 in cash and 1,063,377 common shares of Planet 13 (the “Planet 13 Shares”) pursuant to an option purchase agreement entered into on August 4, 2022. Please see the Company’s press release dated August 5, 2022, for further details.
Planet 13 Illinois holds a dispensary license for the Planet 13 dispensary located in Waukegan, Illinois. The dispensary is in a prominent shopping center with multiple stores, restaurants, hotels, and a recently announced casino project. It is off the Interstate 94 highway between Milwaukee and Chicago, close to the Wisconsin border.
“We’re thrilled to exercise this option for the remaining 51% of our Planet 13 Illinois dispensary at a price that we view as very accretive,” said Bob Groesbeck, Co-CEO of Planet 13. “This transaction is a good example of our philosophy at Planet 13. One, location is everything. We couldn’t have a better spot than our dispensary next to an approved casino project and off the major interstate between Milwaukee and Chicago. Two, a disciplined and patient approach to finding attractively priced opportunities and cash management. And three, creating one-of-a-kind retail destinations designed to thrill our customers.”
Construction at the dispensary is underway with an opening date anticipated later this year. Planet 13 has received all local and state approvals, excluding final approval upon completion of construction.
As at the August 4, 2022 option agreement date and February 7, 2023 option exercise date, the Planet 13 Shares were valued at US$2,000,000 and $950,021, respectively, based on 5-day volume-weighted average prices. The Planet 13 Shares will be subject to a four-month and one day hold period under Canadian securities laws and a minimum of six months following the date of issuance for resales under Rule 144 promulgated under the U.S. Securities Act of 1933 (assuming all other requirements of Rule 144 are satisfied at such time), and following such six month period will be subject to a lock-up whereby 1/12 of the Planet 13 Shares will be released each month thereafter in accordance with a lock up agreement with Frank Cowan.
For more information on Planet 13, visit the investor website.
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 in Orange County, California. Planet 13 also holds a medical marijuana treatment center license in Florida and a dispensing license in the Chicago-region of Illinois. 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 Securities Exchange (CSE) under the symbol PLTH and on the OTCQX under the symbol PLNHF.