Planet 13 Holdings Inc. (CSE:PLTH) recently opened its Planet 13 Superstore, which is expected drive its customers and revenues multifold over the coming quarters
SmallCapPower | February 13, 2019: Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) is a vertically-integrated U.S. cannabis company with cultivation, production and distribution in the state of Nevada. Planet 13 operates a dispensary selling both recreational (Planet 13) and medical (Medizin) product lines.
On November 1, 2018, the Company opened its Planet 13 Superstore, which is strategically located next to the famed Las Vegas Strip, and is expected to attract more than 2,000 customers daily, three times its other operating dispensary.
- Vertically-integrated cannabis player
- Profitable dispensary
- Large market opportunity
- Recently-launched Planet 13 Superstore to accelerate growth
Recently-launched Planet 13 Superstore to accelerate growth
Planet 13 Holdings opened its Planet 13 Superstore in November 2018. Located in close proximity to the Las Vegas Strip and housed in a 100,000 sq.ft commercial space, the Superstore is the largest cannabis entertainment complex located in the entertainment capital, Las Vegas. The store will offer diverse brands in addition to its own Medizin Brand.
In a research report dated December 4, Beacon Securities analysts Doug Cooper and Susan Xu said its Planet 13 Superstore is tracking a one-year revenue run rate north of US$40 million. These analysts believe that Planet 13 Holdings could capture a 30% share of Nevada’s US$1.3 billion cannabis market, which would equate to US$390 million in revenue for Planet 13.
Strategically located near the Las Vegas Strip, Planet 13’s state-of-the-art cannabis dispensary is spread over 2,300 sq ft. The dispensary is open 24/7 and has attracted 1,400 customers per day on its first month of opening.
Source: The Manual
Large market opportunity
Following legalization of recreational cannabis on July 1, 2017, adult-use cannabis sales in Nevada totaled US$200 million in H2 2017, presenting a large market opportunity for Planet 13. With the opening of Superstore in November 2018, customers and revenues are expected to double going forward. With expected annual revenues of US$20 million in 2018 from existing dispensary, revenues in 2019 could treble to more than $60 million with the addition of the Superstore.
Vertically-integrated business model
The Company owns a total of six licenses, two each for cultivation, production and dispensing. For cultivation and production, Planet 13 operates two facilities – 15,000 sq. ft. with indoor cultivation, at Clark County, and a 500 sq. ft. R&D and genetics testing facility at Beatty, Nye County. These facilities produce branded Capsules, Syrups and other high-margin products, as well as flower strains and Medizin brand varying Vape Cartridges & concentrates.
An ideal location coupled with a large market for recreational cannabis presents a lucrative opportunity for Planet 13. The opening of the Superstore in November 2018 is expected drive its customers and revenues multifold over the coming quarters. The Company served 1,400 customers per day in December with an average sale that exceeded expectations, with that figure rising more than 8% month-over-month to 1,550 customers per day in January.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
To read our full disclosure, please click on the button below: