Vireo’s Planet 13 Deal Is About More Than Store Count
The companies announced July 27 that Vireo had agreed to acquire Planet 13
Vireo Growth’s announcement that it will acquire Planet 13 emphasized the assets and projected scale typical of a major acquisition: a marquee Las Vegas superstore, a Florida footprint, and a path to becoming the country’s largest dispensary operator by store count. What the announcement did not emphasize is that Vireo is paying a premium for a company whose first-quarter revenue fell by roughly one-quarter as its net loss quadrupled.
The gap between the deal’s projected value and Planet 13’s recent financial performance is the actual story.
The terms of Vireo’s Planet 13 acquisition
The companies announced July 27 that Vireo had agreed to acquire Planet 13 in an all-stock transaction. The deal remains subject to Planet 13 shareholder approval, regulatory approvals, and other customary closing conditions. Each Planet 13 share will convert into 0.015383618 of a Vireo subordinate voting share, a ratio the companies say represents a 16.6-percent premium over Planet 13’s 20-day volume-weighted average price as of July 24, and a 24-percent premium over the July 24 closing price.
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