Larry Scheffler, co-CEO of Planet 13: ‘It empowers us to improve margins through vertical integration at our store, enter the wholesale market with our portfolio of award-winning products, and gives us an experienced management team and foundation to continue to expand in California’
Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) has completed its acquisition of Next Green Wave (CSE:NGW, OTCQX:NXGWF) Holdings Inc (NGW), giving the company cultivation and production operations in the massive California cannabis market.
Under the deal, Planet 13 acquired all of the issued and outstanding common shares of Next Green Wave (CSE:NGW, OTCQX:NXGWF). The arrangement was overwhelmingly approved by NGW shareholders in accordance with the requirements of the Business Corporations Act (British Columbia) at a special meeting of NGW shareholders held on February 25, 2022, and was subsequently approved by the Supreme Court of British Columbia on March 1, 2022.
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“The closing of this transaction significantly improves our position in California. It empowers us to improve margins through vertical integration at our store, enter the wholesale market with our portfolio of award-winning products, and gives us an experienced management team and foundation to continue to expand in California,” said Larry Scheffler, Co-CEO of Planet 13, in a statement.
“I’d like to thank the team at Planet 13 and Next Green Wave for their hard work getting this transaction closed and the start they’ve made on integration. We’ve been incredibly impressed with the quality of cultivation and look forward to continued expansion.”
Key transaction highlights and benefits:
- Increase vertical integration — cultivation and production will serve as the backbone of Planet 13’s operations in the California market.
- Brand and product extension — enables Planet 13 to expand its popular brand portfolio into California.
- Experienced management — adds an experienced management and cultivation team to run Planet 13’s California operations.
- Platform for expansion — enables Planet 13 to continue to add retail in California to generate economies of scale.
Transaction details
Under the terms of the deal, each NGW common share has been exchanged for 0.1145 of one Planet 13 common share and $0.0001 in cash (Exchange Ratio.)
In completing the acquisition, Planet 13 said it has issued 21,361,002 Planet 13 shares to former NGW shareholders. In addition, each NGW option has been exchanged for replacement Planet 13 options that entitle the holders to receive, upon exercise thereof, Planet 13 Shares based upon the Exchange Ratio.
It is expected that the NGW shares will be delisted from the Canadian Securities Exchange at the close of business on or about March 2, 2022, and NGW intends to submit an application to the applicable securities regulators to cease to be a reporting issuer and to terminate its public reporting obligations.
