Vireo Growth has entered into an agreement to acquire Planet 13 Holdings, a transaction expected to significantly expand Vireo’s marijuana operations in Nevada and Florida while adding to its developing presence in Illinois.

Under the agreement announced Monday, each outstanding share of Planet 13 common stock will be converted into the right to receive 0.015383618 of a Vireo subordinate voting share.

The exchange represents a 16.6% premium over Planet 13’s 20-day volume-weighted average share price as of July 24 and a 24% premium over its closing price that day.

Planet 13 operates 36 dispensaries, including its flagship Las Vegas SuperStore, approximately 45,000 square feet of active cultivation and production space in Nevada and 33 medical marijuana dispensaries in Florida.

The acquisition would also give Vireo two Florida cultivation and production facilities totaling more than 76,000 square feet, a dispensary in Waukegan, Illinois, and a Nevada cannabis consumption lounge license.

Including previously announced transactions, Vireo expects to operate approximately 17 dispensaries in Nevada and 106 in Florida following the completion of the deal. The company said the Florida total would make it the state’s second-largest dispensary network.

Once all of Vireo’s previously announced and pending acquisitions are completed, the company expects to operate approximately 265 dispensaries across 15 states, which it says would make it the largest U.S. marijuana operator by dispensary count.

“Planet 13 represents another significant milestone of our disciplined growth strategy,” said Vireo Chief Executive Officer John Mazarakis. “These assets will deepen our existing footprint in Nevada and Florida, while complementing our developing platform in Illinois.”

The boards of both companies unanimously approved the transaction. A special committee of independent Planet 13 directors also determined that the deal was in the best interest of the company and its stockholders.

The acquisition remains subject to approval from Planet 13 stockholders, cannabis regulators and the Canadian Securities Exchange, along with the effectiveness of a registration statement filed with the U.S. Securities and Exchange Commission.

The agreement includes a $1.8 million termination fee that Planet 13 may be required to pay Vireo under certain circumstances. Planet 13 shares are expected to be delisted following the transaction’s completion.