Looking for joint venture
In a phone interview with BNN Bloomberg on January 10, Bob Groesbeck, the CEO of Planet 13 Holdings (PLTH) (PLNHF), stated that the company is open to a joint venture to expand its operations into Ontario. However, he said Planet 13 won’t take part in Ontario’s lottery process for a retail store license.
Groesbeck added, “We’ve been in touch with a number of groups [in Ontario] that are in the process. If we move forward with that process, we’d look at more [joint venture] opportunities.”
In November 2018, Planet 13 Holdings opened a superstore in Las Vegas, which is the biggest cannabis store in the world with an area of 112,000 square feet. In December, the store served 1,430 customers per day and also outperformed the company’s expected average ticket size.
In the interview, he added that Planet 13 is looking at expanding its business beyond Nevada and has been focusing on heavily trafficked areas that cater to tourists and high-end customers. In Canada, the company is looking at Toronto, Vancouver, and Quebec as possibilities for new stores.
Since its listing on the Canadian Securities Exchange on June 21, 2018, Planet 13’s stock price rose to a high of $3.50 on November 6. However, since then, the company has lost ~55% of its value. The company, which has production and cultivation licenses in Nevada, has failed to obtain new licenses for cannabis retail stores in the state, which seems to have led to a fall in its stock price.
However, the company has started 2019 on a brighter note with its stock rising by 5.4% year-to-date. During the same period, peers MedMen Enterprises (MMEN) (MMNFF), Green Organic Dutchman Holdings (TGOD) (TGODF), and iAnthus Capital Holdings (IAN) (ITHUF) have returned 10.1%, 13.0%, and 9.3%, respectively.