Planet 13 Holdings lists on the OTCQB in advance of their superstore launch in Las Vegas
Early last week Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) began trading on the OTCQB Venture Market under the ticker symbol PLNHF, a little over a month shy of the company’s planned opening of their superstore on the Las Vegas strip. The company has seen recent success in both the medical and recreational cannabis markets, having opened the doors of its original dispensary in 2016. They have been quietly and steadily operating ever since.
Their new recreational cannabis dispensary, the Planet 13 Superstore, is ready to open in Las Vegas on November 1. The store has been in the spotlight as it will be the largest, most advanced retail dispensary in the world, conveniently located adjacent to the Las Vegas strip where management plans to capitalize on the city’s tourism trade. Meanwhile, the company looks to take advantage of the recent market rally that marijuana stocks have seen since late August, reversing most of the volatility seen earlier in the year.
"Planet 13 is entering a phase of significant growth. The grand opening of our 40,000 square foot Las Vegas Superstore is on track for November 1st, we continue to generate strong growth and profitability from our Medizin dispensary and discussions to open additional retail locations in other U.S. jurisdictions are underway," said Robert Groesbeck, co-CEO of Planet 13 in a statement. "A U.S. listing will both enable a broader investor base to participate in the Planet 13 story and enhance visibility as we build a premier portfolio of retail cannabis properties across the U.S., grounded in the Las Vegas experience."
Steady but strong growth brings Planet 13 into orbit
With all that focus, investors may not have noticed how well the original Nevada Medizin/Planet 13 joint medical and recreational dispensary has been performing. The company demonstrated very strong growth during the first two quarters of 2018, reporting record Q2 revenues of $4.4 million (adjusted EBITDA $0.8 million), marking the eighth consecutive quarter of revenue growth for the company. Revenue was $8 million during the first six months of 2018.
Nevada legalized recreational cannabis in 2017, and Planet 13 is greatly anticipating the millions of Vegas tourists who will likely pour through the doors of their new superstore, as the building itself is a tourist attraction. The company’s strong financial performance could be an indicator that the new superstore will also experience record growth, at least according to some experts.
Planet 13 has a very sound business model that is being duplicated on a grand scale befitting the glitz and glamour of the Vegas Strip. First, the company’s original dispensary is award-winning. The customer volume in the Medizin location is certainly nothing to sneeze at—they see over 700 customers per day, with an average spend of $70. The dispensary has a hybrid model; they sell medical cannabis under the Medizin brand and recreational cannabis under the Planet 13 brand.
Planet 13 Announces Record Revenue and Adjusted EBITDA for Q2 2018: Revenue +203% vs. Q2 2017 and +23% from Q1 2018; Adjusted EBITDA +521.3% and +81.7%https://t.co/xA8MGqBzrt
— Planet 13 Holdings Inc. (CSE: PLTH / OTC:PLNHF) (@P13HoldingsInc) August 29, 2018
From cultivation and production to revenue and more
The company also holds two Nevada cultivation licenses. Together, the facilities have a future greenhouse capacity of about 2.5 million square feet, which is a lot of bud. Furthermore, these cultivation facilities are also licensed for production, where they churn out award-winning Planet 13 products; several strains have finished in the top 3 at the IC Mag 420 Cup.
Planet 13 is one of the very few public cannabis companies with existing revenue ($9 million in 2017). It’s one of the reasons why Planet 13 is such a successful name in the industry. In August, PotNetwork sat down with David Farris, Planet 13’s Director of Marketing, for an exclusive interview.
Farris said that the company set out to create the Medizin/Planet 13 location as a “successful, upscale, elegant dispensary that many people were looking for and couldn’t find in the area.”
As for the target demographic of the store, Farris told PotNetwork that the goal is to make the store inviting to everyone.
“I think it will be very diverse, and that’s always been our goal,” Farris said last August. “We wanted to provide an area where people could be interested in cannabis but not necessarily be experts. We want people who are locals, who are tourists, who really love marijuana or are just starting to really understand marijuana, to come to Planet 13, learn more, be entertained, and see what kind of products and varieties the largest dispensary on planet Earth can provide.”
A proven business model on a larger scale
Planet 13 will bring its proven business model to the superstore, which is expected to have the perfect blend of components from the established business and exciting uniqueness of the new venture. Planet 13 brings its tried-and-true product diversity and knowledgeable staff. The new 40,000 square-foot facility will be a one-of-a-kind entertainment experience that only Vegas can offer, located mere minutes from the vibrant Las Vegas Strip. The company anticipates 2,000 visitors per day with roughly the same $70 spend per shopping cart.
Although Nevada was one of the first states to legalize cannabis, Farris said that many tourists don’t realize that they can legally purchase marijuana in Las Vegas.
“We’ve discovered that people are really just learning about Las Vegas having legal cannabis,” Farris told PotNetwork. “And we hear it all the time, just being established right now, is some people don’t even realize that they can purchase marijuana legally in the state of Nevada or Las Vegas when they’re traveling. I think it’s important for us, as an industry, to communicate and I think the Planet 13 store can definitely contribute to that.”
The Planet 13 Superstore will likely change that perception in a big way. The much-anticipated opening has received international attention since it is expected to be the largest cannabis entertainment complex on planet Earth. One thing is for sure—recreational cannabis will likely never be the same again.