Welcome to our Discover Cannabis series, where we publish in-depth research to introduce new cannabis companies to our coverage.
Situation Overview
Planet 13 (OTCQB:PLNHF) has performed very well in 2019 with the stock up 113% this year so far. Much of the growth came from its recently announced financials for its Superstore in Las Vegas where sales topped some of the largest Canadian cannabis companies. However, we view Planet 13's success as unlikely to be replicated given its lack of track record of winning licenses in Nevada and unclear path to enter other states.
Company Overview
Planet 13 is a cannabis company operating in Nevada that has been garnering a lot of investor attention lately. The company has one license to operate a cannabis dispensary in Nevada and has recently used it to open up a large cannabis store called the Superstore. Planet 13 has one cultivation license in Nevada, which has a capacity of 950 kg per year. The company also has two retail licenses to sell medical and recreational cannabis. Before the Superstore was opened, the company used both licenses in its Medizin location. However, the company wasn't able to secure additional retail licenses in the last application round. In order to open the Superstore on November 1, the company had to shut down its Medizin location to make room for the bigger location. The Superstore is a 16,000 square feet complex that benefits from the large number of visitors that come to Las Vegas each year.
The Superstore is located very close to the Strip in Las Vegas and has produced outstanding sales in the first five months it opened. The company reported sales of $5.5 million in March, which have increased 64% from November 2018 when it first opened. With annualized sales of $66 million based on the latest monthly
