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Thank you.
They posted a "shelf registration" on Sedar.
It's a placeholder for future raises. Not related to one single raise.
Technically referred to as a "Shelf Registration."
Credit goes to...
rfort34US Market7 points·14 days ago
It lays out an upper limit on securities that can be sold in the next 25 months and in many forms. Use of proceeds will be defined in a supplemental document.
There's no specific deal but this allows them to do a deal with just a supplemental document and not having to redo a prospectus.
It's basically a more agile way to raise money.
ReplyGive AwardShareReportSavelevel 4Silly_Raddlt1 point·14 days ago
So it means they are planing to raise within 25 months of the date of this prospectus?
ReplyShareSaveEditlevel 5rfort34US Market3 points·14 days ago
It means the next raise won't need a full prospectus. They can just write a small supplemental document.
Saves in time and legal fees.
ReplyGive AwardShareReportSavelevel 6Tacocats_wrathbulls on parade3 points·13 days ago
Well, thats pretty neet. Thanks for sharing that tid bit of info.
ReplyGive AwardShareReportSavelevel 6Silly_Raddlt2 points·14 days ago
Thank you.
Yes, Definitely heavily shorted. I hope the company comes out with some good news for a nice short squeeze.
https://volumebot.com/?s=tcnnf
Planet 13 Holdings Inc. Comments on Trading and Provides Update
https://www.newswire.ca/news-releases/planet-13-holdings-inc-comments-on-trading-and-provides-update-701917291.html
heir bought deal of $26m at a $3/share price with warrants exercisable at $3.75/shareI is "above" the current price. I had even converted that $3.75 to USD just to lower my estimates, and it is still above the current price.
Also they are expecting additional licenses this week. which I assume the company would follow up shortly with their intentions for the new licenses.
There "SHOULD" be positive news coming this week.
I tried to look for reasons for the sell off the last few days.
Not insider selling.
No material changes to financials.
Not share lockup expiring.
Bought deal was announced 29 days ago. should be priced in.
Their revised up their superstore traffic and average ticket prices.
The only major news out there for the sector is Apha's mess, which IS affecting the overall MJ sector.
Please chime in with your own analysis, or what you think are the factors for the previous two days.
As someone on reddit pointed out.
"They just raised $26m at a $3/share price with warrants exercisable at $3.75/share.. honestly, unless I’m missing something, that’s insane! They’re raising money at double their prevailing share price."
The only thing I can tie the selloff to is Canaccord Genuity, which is covering both Aphria and PLNHF.
Updated Superstore numbers:
If you calculate their number of 1400/day (during conference call: was 1300/day) not increasing at all for the year, with avg spending of $75 (during conference call was $70, I added $5 due to todays' news that current ticket sales exceed their estimates), that is $38,325,000 in sales annually. (1400)(75)(365)
They hold 2 retail licenses, one will be moved to the entertainment complex (cross over time about 1 month). The ones running prior to the move brings in about 776 customers/day with avg spending of $70/customer: $19,826,800-$1,652,233(1 month) = $18,174,567
Together you are looking at annual sales of $56,499,567, with current market cap of 154M, its trading 2.72x sales. (which has the lowest p/s multiple compared to all of the companies below which had lower quarterly revenues.
*If you were willing to buy at $2.00+, why sell it at $1.30"? Please give your 2 cents on what changed...
Sunniva
(CSE: SNN) 09/30/18 $3.7 -18% ~04/30/19
1933 Industries
(CSE: TGIF) 07/31/18 $3.9 279% ~12/31/18
Namaste Technologies
(TSXV: N) 08/31/18 $3.9 1% ~03/31/18
Cronos Group
(TSX: CRON) 09/30/18 $3.8 186% ~02/14/18
Organigram
(TSXV: OGI) 05/31/18 $3.7 93% ~12/07/18
Newstrike Brands
Innovative Industrial Properties
(NYSE: IIPR) 09/30/18 $3.9 152% ~03/18/19
Halo Labs
(NEO:HALO) 09/30/18 $3.6 10% ~04/30/19
Cannex Capital
(CSE: CNNX) 07/31/18 $3.4 122% ~12/31/18
Marimed
(OTC:MRMD) 09/30/18 $3.4 98% ~04/01/19
Surna
(OTC:SRNA) 09/30/18 $3.3 112% ~04/01/19
Helix TCS
(OTC:HLIX) 09/30/18 $3.1 176% ~04/01/19
Plus Products
(CSE: PLUS) 09/30/18 $2.6 618% ~04/01/19
Planet 13 Holdings
(CSE: PLTH) 09/30/18 $4.9 62% ~04/30/19
Also, no insider activity since June. so the sell off wasn't insiders.
https://www.canadianinsider.com/company?ticker=PLTH
Part of their news release today.
"“There are a number of potential catalysts for growth in the next few months. This financing gives us the
capital required to execute on each,” said Bob Groesbeck, Co-CEO of Planet 13. “We should hear about
additional licenses in the State of Nevada this week, which if granted, would allow us to reopen our
Medizin dispensary and build additional similar dispensaries in targeted markets. Since opening, the
Superstore has served an average of 1,400 customers per day with an average ticket above our target,
exceeding our expectations for the first month and trending towards our stated run-rate goal. We are
progressing towards construction on the Planet 13 coffee shop, located in the Superstore and are
preparing for other tourist-friendly stores within the 112,000 sq. ft. Superstore facility to drive additional
traffic. These growth initiatives along with opportunities we are seeing in additional states and the positive
progress towards legalized consumption lounges we have seen in the last month make this an exciting
time to be a Planet 13 shareholder."
APHA sold off their shares of Liberty as of Sept, 2018. There shouldn't be any financial dealings with APHA at this time.
https://www.marketwatch.com/press-release/aphria-completes-divestment-of-all-us-cannabis-assets-with-sale-of-remaining-interest-in-liberty-health-sciences-2018-09-06
From what I remember of their last conference call.
Additional licenses should be approved by Dec 5, they applied for 6 licenses.
If they win additional licenses, they will open additional dispensaries across Nevada.
https://www.reddit.com/r/weedstocks/comments/9wh6bh/planet_13_plnhf_q3_2018_earnings_call_and_key/
Halted
I think a great majority of people just focus on their super store and neglecting they hold 6 licenses, 2 dispensary, 2 cultivation (grower like the rest, 100% on their minds since Origin House CEO sits on their board), and 2 production (CBD).
Earnings calls key takeaways. current dispensaries.
1st Q traffic 581/day
2nd Q traffic 693/day
3rd Q traffic 776/day'
Super Store.
Cost = 8.4M, 400k over budget due to steel tariffs and tight labor market.
Spending upgrades made in anticipation of approval for consumption lounge.
Overall.
Margin improvements will be seen in Q4
Existing cash will be used for phase 2 of the superstore, reopen dispensary, and targeting additional adjacent markets.
Closed dispensary was closed on Oct 29, additional licenses should be approved by Dec 5, they applied for 6 licenses.
If they win additional licenses, will open additional dispensaries across Nevada.
Regulatory information for onsite consumption by Q4 this year or Q1 next year.
In late stage discussions to bring in premium confectioneries and a brewery and infused products.
Coffee shop will open soon with food options in discussion.
------------------- Personal look at the numbers ------------
Take in your consideration that the quarter does not include a single day of the grand opening of the 1300/day traffic. The 8.6M in cash also does not include the recent offering of 25M. With that ~33M cash, expect them to be quickly expanding the business (either the lounge area or the dispensary into other states), thats what I would do with excess cash.
Entertainment complex.
If you calculate their number of 1300/day not increasing at all for the year, with avg spending of $70, thats $33,215,000 in revenue annually.
They hold 2 retail licenses, one will be moved to the entertainment complex (cross over time about 1 month). The ones running prior to the move brings in about 776 customers/day with avg spending of $70/customer: $19,826,800-$1,652,233(1 month) = 18,174,567
Together you are looking at annual sales of $51,389,567, with current market cap of 264M, its trading 5.14x sales.
Planet 13 Holdings, Inc. operates as a vertically integrated cannabis organization. The company currently holds 6 licenses in the Nevada market. (source: https://www.planet13holdings.com/locations/)
I did not take into consideration of cross-over customers not future increase decrease of foot traffic.
Thank you
The fees associated with the applications are as follows:
Application fee $5,000
License for retail marijuana store - $20,000
How to Open a Marijuana Retail Store in Nevada
The state allows marijuana retail store to open in Nevada. Whether this is possible or not will hinge entirely on the city and/or county of choice as the state allows the local municipalities to ban or place moratoriums on whether to license dispensaries for operation or not.
*perhaps I'm misinformed...
Just bought 2 bottles of the 2oz CBD Oil
2x 2oz drops, 500mg - $135.90. They have a coupon code out made it $124.47 free shipping.. Supporting CVSI...
Does anyone know if Vascepa is being prescribed by doctors yet?
One of the few with a positive EBITDA, and low p/s.
p/s: 11.04 EBIDTA:4.12M P/B: 16.95
[Capture.jpg](https://postimg.cc/KRGv9gjY)
Comps
Came across an excellent DD write up on #PLNHF. I didn't copy over the urls, but the analysis by Beacon Securities is a must read. The comments also includes residents feedback on the Nevada Cannabis market as well as the complex where the experience center will be built.
PLNHF DD
Quick summary:
Marijuana dispensary business based in Las Vegas, Nevada
Currently selling ~US$4.0 M/quarter from one small dispensary far away from the strip, ranking Planet 13 as the tenth highest by revenue of all publicly traded weed stocks
Opening a 16,000 sqft cannabis Superstore on November 1, 2018, a 5 min drive or 15-20 min walk from the Wynn Hotel and right beside the Fashion Show Mall.
The stock is very undervalued relative to peers even with the sales of the existing dispensary alone; the Superstore is just massive upside.
Some background reading:
Beacon Securities initiating report (PDF, Imgur); this is the most important read
Most recent earnings release
Most recent financials (statements, MD&A)
Vice News article about the company
Recent interview with one of the founders (really interesting read)
My take: the stock has run up a ton over the past month but it’s still massively undervalued relative to peers with a market cap of US$200 M. Below is a summary analysis, most of which comes from the Beacon report but I changed some assumptions a bit.
Nevada reported a few weeks ago that sales of recreational cannabis in its first year (July 1, 2017 - June 30, 2018) exceeded state expectations by 60%. Total sales, including medical and ancillaries, totaled US$530 M with recreational cannabis alone at US$425 M. Tax revenue from cannabis was $70 M. Interestingly, Nevada's levy on alcohol generated $49 M last year, meaning that in Year 1, cannabis is already a larger contributor to the state's revenue than alcohol.
These numbers are incredibly strong for Year 1 of legal recreational sales. To put them in perspective, in their respective first year of legal adult use sales: Colorado - $303 M or $54 per capita; Washington - $259 M or $37 per capita; Oregon - $241 M or $59 per capita; California - $1.25 billion (Q2 annualized as its first year is 2018) or $30 per capita. Nevada at $530 M and with a population of 3.0 M equates to $177 per capita or over 3.0x that of Colorado, obviously because of the massive amount of tourist traffic in the state. There are currently many restrictions on where one can consume cannabis in Las Vegas. This may change this November with passage of a law that could allow for on-site consumption that will likely be sponsored by incoming county commissioner Tick Segerblom. Planet 13 is ready for this as well and has plenty or space in its 112,000 SF facility to house a consumption lounge.
Planet 13’s existing dispensary, Medizin, has a ~$20 M run rate, 20% EBITDA margin, $70 current basket size (ie. costs per customer of $55 with EBITDA per customer of $15). While its sales license will be transferred to the superstore for Nov 1, Planet 13 has applied for a new one this week and will likely hear back in November. If successful, assume Medizin contributes $4-$5 M/year of EBITDA in 2019 from the local market seven miles from the Strip.
Planet 13’s Superstore opens on November 1 and caters to tourists, being 5,000 feet from the Wynn and the closest cannabis store to the Strip. Assume 20% of Las Vegas’ incoming 55 M/year of tourists would consume cannabis (lower than national average and likely very conservative given why tourists go to the city in the first place) would imply 11 M/year customers. Assume the superstore obtains 10% market share (again likely conservative, given location) that would be 1.1 M/year of customers or 3,000/day. Assume a 40% increase in avg basket size to Medizin (customers are now mostly tourists on the Strip) implies a basket of $100. Assume similar costs to Medizin, but also increased overhead ($55 + $10 = $65) would leave EBITDA of $35 per customer or 35%. Given revenue of $110 M/year (3,000 customers per day @ $100/customer), 35% margin gives you EBITDA of $38 M/year for the Superstore.
If public consumption is legalized as expected, assume Planet gets a license for a consumption lounge and it takes 6 months to construct, becoming operational in Q4 2019. They would likely charge a cover charge, as is standard in Las Vegas, in addition to selling cannabis on site, so let’s put a placeholder of $7 M/year of EBITDA for a potential consumption lounge.
To sum up, all the above gets you to 2019 EBITDA of US$50 M/year. Given the attractiveness of Nevada as a market, Planet 13’s position therein, and the revenue/EBITDA numbers the company should start to produce, let’s assume it trades at 20x EBITDA (still a massive discount to all of the Canadian operators). That implies a valuation of US$1.0 billion; with 117 M shares outstanding, that’s US$8.50 per share (4.25x current share price of US$2.00).
Any thoughts?