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Tuesday, September 29, 2020

Planet 13 Holdings Inc (OTCMKTS:PLNHF) Acquires Moar Production Capacity

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It shouldn’t go without notice that Planet 13 Holdings Inc (OTCMKTS:PLNHF) just announced that it has entered into an asset purchase agreement pursuant to which it has acquired cannabis inventory, equipment and tenant improvements, and subject to regulatory approval will acquire the Nevada cannabis licenses at a 45,000 square foot indoor cultivation and production facility in Las Vegas, Nevada from West Coast Development Nevada, LLC.

According to the release, Planet 13 is paying $1.156 million for the cannabis inventory, and $3 million for the operating assets, licenses, equipment and tenant improvements which payment is comprised of $0.5 million in cash and $2.5 million of common shares in the capital of Planet 13, resulting in the issuance by the Company of 1,374,833 Consideration Shares based on a 10-day VWAP, all of which shares are being held in escrow until the Second Closing. The license transfer under the Asset Purchase Agreement is contingent on approval by the State of Nevada’s Cannabis Control Board, and upon receiving such approval the Consideration Shares will be released from escrow to WCDN.

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 that it has entered into an asset purchase agreement pursuant to which it has acquired cannabis inventory, equipment and tenant improvements, and subject to regulatory approval will acquire the Nevada cannabis licenses at a 45,000 square foot indoor cultivation and production facility in Las Vegas, Nevada from West Coast Development Nevada, LLC.

We’ve witnessed 32% added to share values of the name over the past week of action. In addition, the stock has seen a growing influx of trading interest, with the stock’s recent average trading volume running just shy of 190% beyond its prior sustained average level.

“We’ve been pursuing additional premium indoor cultivation to expand our Medizin flower line, including our proprietary strain Chloe. Medizin sells out each harvest days after it hits the SuperStore shelves. This agreement allows us to add 25,000 square feet of indoor cultivation immediately, with the ability to expand up to 45,000 square feet in the future,” said Larry Scheffler, Co-CEO of Planet 13. “We look forward to expanding our supply and offering it in 3rd party dispensaries for the first time.”

Earning a current market cap value of $211M, PLNHF has a significant war chest ($19.8M) of cash on the books, which is balanced by about $19.8M in total current liabilities. PLNHF is pulling in trailing 12-month revenues of $88.6M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 22.8%. This may be a very interesting story and we will look forward to updating it again soon. 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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