Planet 13 Holdings Inc. Comments on Trading and Provides Update
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
LAS VEGAS, Dec. 4, 2018 /CNW/ - Planet 13 Holdings Inc. ("Planet 13" or the "Company") (CSE:PLTH) (OTCQB:PLNHF) a leading vertically-integrated Nevada cannabis company, today announced that it is not aware of any fundamental reason for its share price decline over the past two trading sessions and wanted to provide a brief corporate update.
Bob Groesbeck, co-CEO of Planet 13, commented, "I am going to keep this short and sweet. There is absolutely no fundamental reason that we are aware of, for PLTH shares to be trading as they have over the past two days. We opened the Superstore on November 1st as promised, and we have barely scratched the surface of what is possible here. Daily sales and average ticket are already above our internal expectations and trending in the right direction with only four weeks of data in the books and ancillary space still under development. Furthermore, we are optimistic on receiving word about significant value-enhancing catalysts for this company both this week and in early 2019. Together with the management team, Larry and I own approximately 64% of this company, and each of us has a proven track record of building strong, financially profitable businesses. We thank all of our loyal, fundamental shareholders for their support. We are aligned and will continue to drive significant shareholder value for you over the next 12 months."
Corporate Update
- The Company's publicly-stated run-rate expectations for the Planet 13 Superstore are 2,000 customers per day. Since opening, the Superstore has served an average of 1,400 customers per day with an average ticket above the Company's target. Performance has exceeded management's expectations for the first month and is trending towards its stated run-rate goal.
- The Company is in the early stages of its marketing and awareness programs and has recently launched a VIP referral program for hospitality workers and has initiated its wrapped van service to and from the strip corridor.
- The Company has applied for six dispensary licenses in Nevada and expects to hear this week if any will be awarded to the company. If the Company is awarded at least one new license the Company's first license will go towards opening the Medizin dispensary which closed temporarily on October 30th. The Medizin dispensary generated $4.9 million in revenue in Q3 2018. Additional licenses, if awarded, will be used to open Medizin sized dispensaries in other Nevada markets.
- The Planet 13 Superstore has a total of 112,000 square feet. Only 40,000 square feet are currently being utilized. The company is in the advanced stages of design and anticipates construction on a coffee shop beginning Q1 2019 and expects to add additional tourist-friendly shops within the Superstore to drive traffic over the course of 2019.
- Recently launched the Company's in-house TRENDI brand of high-end disposable vape and concentrate product lines, targeted towards the Las Vegas tourist market. The Company has received very positive early reviews of this product line.
- Planet 13 is optimistic that in early 2019, it will hear about the development of legislation that will enable select operators to open onsite consumption lounges. The Company is well-positioned to benefit from such legislation.
- The Company is actively looking at southern California for potential future expansion.
- Planet 13 is well capitalized, with approximately $23 million (CAD$30 million) cash on its balance sheet following the financing that closed earlier today.
About Planet 13 Holdings Inc.
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. The Common Shares trade on the CSE under the symbol "PLTH" and on the OTCQB under the symbol "PLNHF", and the Warrants commenced trading today on the CSE under the symbol "PLTH.WT".
Forward Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward looking-statements relate to, among other things, statements relating to information concerning the timing and grant of additional licenses in the State of Nevada, expected number of daily visitors and average spend amounts at the Superstore, future expansion plans, including expansion of the Superstore and the construction of the coffee shop, enactment of legislation to permit the use of a cannabis consumption lounge in the State of Nevada, and expansion into other territories within and outside of the State of Nevada.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: final approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the Nevada cannabis market and changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in the State of Nevada; and employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States through its subsidiary MM Development Company, Inc. ("MMDC"). Local state laws where MMDC operates permit such activities however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company's business are disclosed in the Company's public filings including its short form prospectus dated November 28, 2018 (including the documents incorporated by reference therein) filed on its issuer profile on SEDAR at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Planet 13 Holdings Inc.
