On June 6, Planet 13 Holdings (PLTH) (PLNHF) announced that it had signed a letter of intent with Newtonian Principles to acquire a license for cannabis sales and a lease for a dispensary in Santa Ana, California. As part of the $10 million deal, Planet 13 will be paying $6 million in cash and the remaining $4 million through 2,039,808 Class A restricted shares to Newtonian upon receiving final approval from the state and local authorities to transfer the dispensary after Newtonian opens it.
Planet 13 hopes to make the 40,000-square-foot dispensary in Santa Ana the largest cannabis dispensary complex after its Las Vegas SuperStore. The company also plans to introduce its Medizin, TRENDI, and Leaf and Vine brands at the dispensary.
In a statement, Larry Scheffler, co-CEO of Planet 13, stated, “We are pleased to announce the extension of the successful Planet 13 brand into California. Our team considers many factors when determining the feasibility of a Planet 13 style store, with the location being the single most important criteria. After a thorough and deliberate search, we identified this excellent site located three miles from the South Coast Plaza Mall, which hosts 24 million visitors a year and is just a short ten-minute drive from Disneyland, with 18 million visitors per year. Since opening in November 2018, next to the Las Vegas Strip, Planet 13 has successfully created Nevada’s top concentrate brand in TRENDI and accounted for ~9.1% of all cannabis dispensary sales in Nevada in March 2019. We look forward to sharing the Planet 13 experience with our customers in California,” as reported by Cision.
Today, Planet 13 was trading ~7.0% higher as of 11:10 AM EST. YTD, the company has returned 72.5% as of June 6. In comparison, peers Curaleaf Holdings (CURLF) (CURA), iAnthus Capital Holdings (IAN) (ITHUF), and the Green Organic Dutchman Holdings (TGOD) (TGODF) have returned 72.4%, -5.3%, and 45.1%, during the same period, respectively.