The Nevada Cannabis Compliance Board (CCB) has approved Vireo Growth’s proposed acquisition of Planet 13 Holdings and its Nevada subsidiaries, clearing a key regulatory hurdle in a deal that would significantly expand Vireo’s marijuana operations in Nevada, Florida and Illinois. The CCB also approved Vireo’s proposed acquisition of Clover Creek Organics, a separate Nevada marijuana business.
The approval came during the board’s October 15 meeting and covers the proposed transfer of ownership and control of Planet 13’s Nevada marijuana businesses to Vireo. The transaction, first announced in July, calls for Vireo to acquire 100% of Planet 13’s outstanding equity through an all-stock merger.
Under the agreement, Planet 13 shareholders will receive approximately 0.01538 Vireo subordinate voting shares for each Planet 13 share they own. The companies said the transaction represented a 16.6% premium over Planet 13’s 20-day volume-weighted average share price as of July 24.
The acquisition would bring Planet 13’s flagship Las Vegas marijuana superstore under Vireo’s ownership, along with another Nevada dispensary, approximately 45,000 square feet of active cultivation and production capacity, and roughly 2.3 million square feet of facilities available for potential expansion. The Nevada operations also include marijuana distribution and consumption lounge licenses.
Including previously announced Nevada transactions, Vireo expects its combined operations to include approximately 17 dispensaries and 150,000 square feet of active cultivation and production capacity in the state.
The merger would also substantially increase Vireo’s presence in Florida, adding approximately 33 dispensaries and two cultivation and production facilities totaling more than 76,000 square feet. The company has projected that its Florida operations would reach approximately 106 dispensaries following the transaction and its other announced acquisitions.
Vireo and Planet 13 entered into their definitive merger agreement on July 26. If completed, Planet 13 would become a wholly owned subsidiary of Vireo and cease operating as an independent publicly traded company.
The Nevada board’s approval addresses the transaction’s state regulatory requirements but does not, by itself, complete the merger. The agreement remains subject to shareholder approval and other closing conditions outlined in filings with the Securities and Exchange Commission (SEC).
