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FINWIRES

Vireo Growth to Buy Planet 13 Holdings in All-Stock Deal

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Vireo Growth (VREO.CN) will buy Planet 13 Holdings (PLTH.CN) in an all-stock deal after the companies entered a definitive merger agreement, Vireo said in a statement on Monday.

As part of the deal between the two vertically integrated cannabis companies based in the US, each issued and outstanding share of Planet 13 common stock will be converted into the right to receive 0.015383618 of a Vireo subordinate voting share, subject to some terms. The boards of directors of both companies unanimously approved the deal, Vireo said.

Vireo expects the deal to add 36 dispensaries, three active cultivation and production assets, and expansion capabilities of up to 2.3 million square feet of cultivation and production in Nevada. It will also add a distribution license and a cannabis consumption lounge license, it said.

Vireo added it will "significantly" enhance its operating scale in Nevada and Florida while "strengthening" its pending initial platform in Illinois.

The deal also has a termination fee of $1.8 million payable by Planet 13 to Vireo in certain specified circumstances. Planet 13 shares of common stock will be delisted from the Canadian Securities Exchange and withdrawn from the OTCQX Market upon completion of the deal.

Shares of Vireo Growth were last seen unchanged at C$13.7 on the Canadian Securities Exchange.

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