Planet 13 Holdings, a Nevada-based marijuana company with operations in California, agreed to a deal worth roughly 91 million Canadian dollars ($70.3 million) to acquire indoor cannabis producer Next Green Wave Holdings.
Next Green Wave (NGW) operates a Coalinga, California, facility that “is home to its nursery, cultivation, distribution, and future packaging business,” according to a Planet 13 news release issued Monday.
“NGW’s operations will serve as the backbone of Planet 13’s continued focus on the California market,” the release noted.
“NGW will enable Planet 13 to introduce their diverse brand portfolio of exotic, pheno-hunted cultivars to the Santa Ana superstore as well as across the state.”
Planet 13 raised CA$69 million in February for potential acquisitions and other moves.
The company opened a superstore in Santa Ana, California, this year and is working to expand into Florida and Illinois.
Under terms of the latest acquisition, Next Green Wave shareholders will receive 0.1081 Planet 13 shares and $0.0001 in cash per each Next Green Wave share.
The exchange ratio is subject to adjustment in certain circumstances, and the transaction is subject to shareholder, regulatory and court approvals.
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The deal is expected to close in the first quarter of 2022.
Planet 13 shares trade as PLTH on the Canadian Securities Exchange and as PLNHF on U.S. over-the-counter markets.