The Planet 13 Holdings Inc (OTCMKTS:PLNHF) Story So Far

The Planet 13 Holdings Inc (OTCMKTS:PLNHF) Story So Far

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Planet 13 Holdings Inc (OTCMKTS:PLNHF) just announced a record-breaking January driven by strong traffic and the 2nd consecutive month of approximately $100 average ticket size. January revenue was ~10% higher than the seasonally slow months of November and December.

According to the release, “Preliminary unaudited gross margin was consistent with previously reported range of 56-59%. The restaurant and event space that were opened as part of the Phase II development increased customer awareness of the Planet 13 Las Vegas Cannabis Entertainment Complex and enhanced customer engagement resulting in longer average time spent exploring the SuperStore and higher average ticket size.”

Planet 13 Holdings Inc (OTCMKTS:PLNHF) promulgates itself as a cannabis company that cultivates, produces, and distributes medical and recreational cannabis in Nevada, the United States.

It also operates dispensaries that provide recreational cannabis, cannabis extracts, and infused products. In addition, the company sells its products online. It operates under the Medizin and Planet 13 brand names. The company is headquartered in Las Vegas, Nevada.

As a vertically-integrated and established cannabis company in the Nevada market, Planet 13 Holdings, Inc. provides an array of cannabis products available through its licensed operations. Planet 13 Holdings, Inc. is focused on providing a dispensary experience and managing cultivation efficiencies through its technology. Planet 13 may be able to build on its position in the Nevada cannabis market as it seeks to expand its existing operations. In the Fall of 2018, the company was working to open a retail dispensary immediately adjacent to the Las Vegas strip.

According to company materials, “Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas – the entertainment capital of the world. Planet 13’s mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products. Planet 13’s shares trade on the Canadian Stock Exchange (CSE) under the symbol PLTH and OTCQB under the symbol PLNHF.”

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As noted above, PLNHF just announced a record-breaking January driven by strong traffic and the 2nd consecutive month of approximately $100 average ticket size. January revenue was ~10% higher than the seasonally slow months of November and December.

Even in light of this news, PLNHF hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Moreover, the listing has benefitted from a jump in recent trading volume to the tune of 0% over what the stock has registered over the longer term.

“January is a strong proof point for the network effect of Phase II [restaurant, event center, and consumer-facing production facility]. As we add additional attractions and store-in-store options we expect the cross-promotion and improved customer experience to continue to drive traffic and ticket growth,” said Larry Scheffler, Co-CEO of Planet 13. “I would like to thank our customers who continue to choose Planet 13 for their cannabis shopping experience when visiting Las Vegas. It is gratifying to see the SuperStore’s year over year growth and to witness our return customers’ excitement when they discover the SuperStore’s new features.”

Currently trading at a market capitalization of $128M, PLNHF has a significant war chest ($24M) of cash on the books, which must be weighed relative to about $20.2M in total current liabilities. One should also note that debt has been growing over recent quarters. PLNHF is pulling in trailing 12-month revenues of $73.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 243.3%. We will update the story again as soon as developments transpire. Sign-up for continuing coverage on shares of $PLNHF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $PLNHF, either long or short, and we have not been compensated for this article.

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