Planet 13 Holdings Inc (OTCMKTS:PLNHF) shares have been taking a beating over the past 10 months in a steady downward trend. Management hopes to change that with its latest move. The company, along with Next Green Wave Holdings Inc, is pleased to announce that the companies have entered into a definitive arrangement agreement pursuant to which Planet 13 will acquire all of the issued and outstanding common shares of NGW, by way of a court approved plan of arrangement, for total consideration of approximately C$91 million.
According to the release, under the terms of the Agreement and based on pricing as of December 17, 2021, shareholders of Next Green Wave (“NGW Shareholders”) will receive 0.1081 of a common share of Planet 13 subject to calculations as described below, and $0.0001 in cash, for each NGW Share held. Based on Planet 13’s 10-day volume weighted average price and the Exchange Ratio as at December 17, 2021, the implied deal price per NGW Share is C$0.465, representing a premium of approximately 52% to the closing price and 44% to the 10-day VWAP of NGW Shares on the Canadian Securities Exchange as of December 17, 2021.
Planet 13 Holdings Inc (OTCMKTS:PLNHF) promulgates itself as a vertically integrated cannabis company with award-winning cultivation, production, and dispensary operations in Las Vegas as well as dispensary operations in Orange County, California.
Planet 13 also holds a medical marijuana treatment center license in Florida and a 49% interest in Planet 13 Illinois which won a lottery for a Social-Equity Justice Involved 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.
According to company materials, “Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas – the entertainment capital of the world. 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 Stock Exchange (CSE) under the symbol PLTH and OTCQB under the symbol PLNHF.”
As noted above, PLNHF just announced a definitive arrangement agreement pursuant to which Planet 13 will acquire all of the issued and outstanding common shares of NGW, by way of a court approved plan of arrangement, for total consideration of approximately C$91 million.
“Today’s announcement is an extension of the strategy we’ve laid out for investors of adding cultivation and production in California to vertically integrate and bring our highly popular brands into the state. We are methodically expanding our footprint to drive topline growth and improved profitability,” said Bob Groesbeck, Co-CEO and Co-founder of Planet 13. “We’ve been incredibly impressed by the Next Green Wave team and their ability to generate revenue and Adjusted EBITDA based on the quality of their cultivation and manufacturing in this very competitive market.”
We’ve witnessed -7% during the past week in terms of shareholder gains in the company, a bounce that has taken root amid largely bearish action over the larger time frame. The situation may be worth watching. PLNHF has a history of dramatic rallies. What’s more, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 33% beyond its prior sustained average level.
At this time, carrying a capital value in the market of $520 million, PLNHF has a significant war chest ($163M) of cash on the books, which is balanced by about $15.1M in total current liabilities. PLNHF is pulling in trailing 12-month revenues of $138.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 36.7%. You can bet we will update this one again as new information comes into view.
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