Jax medical marijuana company acquired in $49M deal

Jacksonville-based VidaCann LLC is being purchased by Planet 13 Holdings Inc., with the deal including 26 VidaCann dispensaries as well as a distribution and growing facility that can support 60 dispensaries -- more than double what the combined company has now.

Part of the deal’s appeal is the limited debt and use of outside capital by VidaCann, the state’s ninth-largest cannabis operator, according to Planet 13 Co-CEO Bob Groesbeck.

“We laid out a set of goals at the beginning of the year, including using cost-effective M&A to accelerate time to market in Florida,” Groesbeck said in a statement.

The deal is valued at $48.9 million and includes 78.46 million base shares of Planet 13, a closing cash payment and promissory notes. The former equityholders of VidaCann and its 9496 7346 Quebec Inc. adviser will have an approximately 26.09% pro forma ownership in Planet 13.

"Acquiring VidaCann would significantly accelerate our time to market and, more importantly, scale in Florida," Planet 13 co-CEO Larry Scheffler said in the statement. "VidaCann is one of the 10 largest Florida cannabis operators by retail network size, and we believe it has developed a reputation for high product quality and customer service. We are excited to bring Planet 13's retail and product brands to Florida consumers after the closing of the proposed transaction, especially with the possibility of upcoming adult-use legislation."

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Photo caotion: VidaCann, a medical marijuana company based in Jacksonville, is in the process of a statewide expansion. Image: VidaCann

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