Mr. Bob Groesbeck reports

PLANET 13 ENTERS INTO DEFINITIVE AGREEMENT TO SELL ITS MEDICAL MARIJUANA TREATMENT CENTER LICENSE IN FLORIDA IN CONNECTION WITH THE PREVIOUSLY ANNOUNCED DEFINITIVE AGREEMENT TO ACQUIRE VIDACANN

Planet 13 Holdings Inc. has entered into a stock purchase agreement dated Jan. 22, 2024, to sell all of the issued and outstanding shares of common stock of Planet 13 Florida Inc., which owns a medical marijuana treatment centre licence issued by the Florida Department of Health (MMTC licence), to SGW FL Enterprises LLC. The sale of the MMTC licence is a closing condition to the company's previously announced proposed acquisition of VidaCann LLC.

"We're pleased to be executing on the road map we've laid out for Florida expansion. The sale of this surplus licence was the primary step required for us to move forward with our acquisition of VidaCann and their expansive retail network and cultivation assets," said Bob Groesbeck, co-chief executive officer of Planet 13. "The solid, all cash return from this sale will help facilitate closing and integrating VidaCann."

Pursuant to the purchase agreement, the company will sell the shares for a cash payment of $9-million (U.S.) due on closing. The proposed transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals and the simultaneous closing of the acquisition of VidaCann.

Canaccord Genuity Corp. is acting as financial adviser to the company in connection with the sale of Planet 13 Florida.

About Planet 13 Holdings Inc.

Planet 13 is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations across its locations in California, Nevada, Illinois and upcoming sites in Florida.

We seek Safe Harbor.