US (NV): Acquisition of Santa Ana closed

Planet 13 Holdings has closed the acquisition of all of the issued and outstanding common stock of Newtonian Principles, resulting in Planet 13 acquiring a California cannabis sales license held by Newtonian, and 30-year lease for a dispensary in Santa Ana, California and certain other assets from Warner Management Group. Planet 13 has paid Warner $1,000,000 in cash and cancelled an interim buildout loan to Warner in consideration for the Warner Assets and has issued a total of 3,940,932 Class A Restricted shares in the capital of the Company representing an agreed value of $4,000,000, to certain vendors in consideration for the Newtonian Shares.

The Consideration Shares will be subject to a four-month and one day hold period under Canadian securities laws and following such period will continue to be subject to a lock-up whereby 1/8th of the Consideration Shares will be released from lock-up each month beginning on September 22, 2020 . The Consideration Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

"Closing the Acquisition is a major step towards Planet 13's first California location. We've examined hundreds of locations and are confident in our ability to replicate the SuperStore experience at this location, introducing new customers to the Planet 13 brand," said Bob Groesbeck Co-CEO of Planet 13. "At this time, due to COVID-19, we are not putting a timeline on the opening of the dispensary.  We have budgeted approximately six million dollars in CAPEX for the opening of the Santa Ana dispensary, leaving us plenty of cash on hand to manage any COVID-19 related impacts on the business."