Las Vegas Cannabis Powerhouse Planet 13's $11.3M Infusion To Fuel Florida Expansion And More

Planet 13 Holdings Inc. PLTH PLNH announced on Tuesday the pricing of its underwritten public offering of 18.75 million units at $0.60 per unit for total gross proceeds of roughly $11.3 million.

The Details

Each unit will consist of one share of the company's common stock and one warrant, with each warrant entitling the holder to purchase one share of common stock for 5 years following the closing of the offering at $0.77.

The company has granted the underwriters a 30-day option to purchase any combination of up to an additional 2,812,500 shares and/or warrants – representing 15% of the number of Units to be issued and sold by the company – to cover over-allotments, if any‎, on the same terms and conditions.

If the option is exercised in full, the company will be entitled to roughly $12.9 million from the offering.

The offering is expected to close on or about Thursday, March 7.

Planet 13 said it intends to use the net proceeds from the offering for working capital and general corporate purposes such as the acquisition of additional retail cannabis licenses in Nevada and the expansion of its retail footprint in Florida and Illinois.

Florida Expansion

The company entered into a membership interest purchase agreement to acquire all of the ownership interests of Florida-based VidaCann, LLC in August for $48.9 million. In January, the Las Vegas-based company entered into a stock purchase agreement to sell all of the issued and outstanding shares of common stock of Planet 13 Florida, Inc., which owns a medical marijuana treatment center license issued by the Florida Department of Health to SGW FL Enterprises, LLC. That move was a closing condition to the company’s proposed acquisition of VidaCann.

Larry Scheffler, co-chairman and co-CEO of Planet 13 said in August that VidaCann is "one of the ten largest Florida cannabis operators by retail network size," adding that its acquisition "would significantly accelerate our time to market and, more importantly, scale in Florida."

Q4 Results And 2024 Outlook

Last week after the company's fourth-quarter financial results hit the wire, co-CEO Bob Groesbeck said the company's goal in 2024 is to "prepare for the exciting potential of adult use in Florida and increase our scale, efficiency and operating leverage in core states to drive growth in operating cash flow and shareholder value."

According to the latest earnings report the company achieved positive adjusted EBITDA of $1.3 million in the quarter ending Dec. 31, compared to an adjusted EBITDA loss of $0.6 million in the corresponding period of fiscal 2022.

Another milestone is a significant decrease in net loss to $14.3 million compared to $38.6 million in the fourth quarter of last year.

PLNH Price Action

Planet 13's shares traded 0.2274% lower at $91.247 per share at the time of writing on Tuesday.

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