Planet 13 Holdings Inc (PLNH)

[makinezmoney]

$PLNHF: NEWS... 200% Increase in REVENUES.


And Market Cap is only $45Million Dollars.




https://www.newcannabisventures.com/nevada-cannabis-company-planet-13-sales-grow-203-to-4-4-million/



*******************************************************************


Planet 13 Announces Record Revenue and Adjusted EBITDA for Q2 2018: Revenue 203% vs. Q2 2017 and 23% from Q1 2018; Adjusted EBITDA 521.3% and 81.7%Font size: A | A | A
6:30 AM ET 8/29/18 | Dow Jones




-- Highly rated1 Medizin dispensary generated $4.4 million in revenue in Q2

2018 and $8.0 million YTD; monthly revenue is growing at a 7.8% compound

rate2

-- Adjusted EBITDA of $789,909 in Q2 2018 and $1.2 million YTD;

-- Planet 13 Superstore (the "Superstore") -- 40,000 square foot cannabis

entertainment complex -- set to open November 1st 2018. All required

licensing in place and construction ahead of schedule

-- 413 online deliveries in July 2018; monthly online revenue growing at a

compound rate of 13.5%2 sequentially

All figures are reported in United States dollars ($), unless otherwise indicated

LAS VEGAS, Aug. 29, 2018 /CNW/ - Planet 13 Holdings Inc. (CSE: PLTH) ("Planet 13" or the "Company"), a leading vertically-integrated Nevada cannabis company, today announced record financial results for the three and six-month periods ended June 30, 2018. Planet 13's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

"With two months until the Grand Opening of Phase 1 of the 40,000 square foot Planet 13 Superstore, our team is ahead of schedule," said Bob Groesbeck, Co-CEO of Planet 13. "Construction is progressing rapidly, and we are in the market every day buying product from the top cultivators and brands in Nevada, with the expectation that we will be fully stocked by October 1(st) . Q2 2018 was the eighth consecutive quarter of revenue growth from our Medizin location. Given sustained growth in customer traffic, a team that has consistently made Medizin one of the top-rated dispensaries in Las Vegas(1) , and the building excitement about a world class cannabis and entertainment destination opening adjacent to the Las Vegas Strip, we are confident that we will hit our financial targets quickly and drive strong returns for shareholders."

Larry Scheffler, Co-CEO of Planet 13 added, "We are well capitalized to execute our business plans and given the performance we are seeing in the market, anticipate rapid revenue and cash flow growth from the Superstore location when it opens. Based on our discussions with regulators, we estimate 1.1 million square feet of cultivation capacity coming onstream over the next 12 to 18 months in a market that was fully supplied by 250,000 square feet in 2017. This anticipated oversupply will further bolster margins at the Superstore and has enabled our team to both invest now to prepare for the anticipated approval of a lounge concept on-site early next year and to evaluate accretive retail opportunities in other tier-one U.S. destinations. We have locked-down the closest possible location to the Las Vegas Strip, just steps from some of the most valuable entertainment properties in the world, with significant expansion opportunities on-site. We expect the Superstore to rapidly become a global destination for cannabis aficionados and to drive the brand awareness and loyalty required to enable a rapid and profitable expansion across the U.S."

Financial Highlights -- Q2 -- 2018

Operating Results

All comparisons below are to the quarter ended June 30, 2017, unless otherwise noted

-- Revenues were $4.4 million as compared to $1.5 million, an increase of

203%

-- Gross margin was $2.4 million as compared $1.4 million, an increase of

69%

-- Operating expenses were $1.9 million as compared to $622,152, an increase

of 201%

-- Net loss of $3.4 million as compared to a net income of $22,209

-- Adjusted EBITDA of $798,909 as compared to $128,584

Balance Sheet

All comparisons below are to December 31, 2017, unless otherwise noted

-- Cash and cash equivalents of $17.1 million as compared to $0.5 million,

an increase of 3,686%

-- Total assets of $26.9 million as compared to $8.6 million, an increase of

214%

-- Total liabilities of $6.0 million as compared to $11.0 million, a

decrease of 46%

Q2 Highlights and Recent Developments

For a more comprehensive overview of these highlights and recent developments, please refer to Planet 13's Management's Discussion and Analysis of the Financial Condition and Results of Operations for the Three and Six Months Ended June 30, 2018 (the "MD&A").

-- On May 23, 2018, the Company completed its funding round for combined

gross proceeds of approximately $20,205,000.

-- On June 21, 2018, the Company's common shares commenced trading on the

Canadian Securities Exchange.

Results of Operations (Summary)

The following tables set forth consolidated statements of financial information for the three and six-month periods ending June 30, 2018 and June 30, 2017. For further information regarding the Company's financial results for these periods, please refer to the Company's interim financial statements for the period ended June 30, 2018 together with the MD&A, available on Planet 13's issuer profile on SEDAR at www.sedar.com and the Company's website https://www.planet13holdings.com.



Three Months Three Months Six Months Six Months

Ended Ended Percentage Ended Ended Percentage

Jun-30-2018 Jun-30-2017 Change Jun-30-2018 Jun-30-2017 Change

Revenue

Revenues, net of

discounts 4,426,197 1,461,782 202.8% 8,026,679 2,596,215 209.2%

Gain on

Biological

Asset

Transformation 1,058,531 774,970 36.6% 3,189,227 2,375,657 34.2%

Cost of Goods

Sold (3,105,592) (830,114) 274.1% (7,214,697) (1,450,086) 397.5%

Gross Profit 2,379,136 1,406,638 69.1% 4,001,209 3,521,786 13.6%

Expenses

General and

Administrative 1,644,556 589,735 178.9% 2,755,501 1,021,788 169.7%

Sales and

Marketing 229,363 32,417 607.5% 334,909 45,808 631.1%

Depreciation and

Amortization 29,077 28,804 0.9% 61,440 57,239 7.3%

Non-cash

Compensation

Expense 1,596,134 - n/a 1,596,134 - n/a

Total Expenses 3,499,130 650,956 437.5% 4,747,983 1,124,835 322.1%

Income (Loss)

From

Operations (1,119,994) 755,682 (248.2%) (746,774) 2,396,951 (131.2%)

Other (Income)

Expense:

Interest

Expense, net 121,405 255,218 (52.4%) 239,857 488,337 (50.9%)

Foreign exchange

(gain) loss 266,521 - n/a 266,521 - n/a

RTO acquisition

costs 532,367 - n/a 532,367 - n/a

(Gain) loss on

conversion of

debt 848,925 - n/a 848,925 - n/a

Total Other

(Income)

Expense 1,769,218 255,218 593.2% 1,887,669 488,337 286.6%

Net loss for the

period before

tax (2,889,212) 500,464 (677.3%) (2,634,443) 1,908,614 (238.0%)

Provision for

tax - current 514,093 478,255 7.5% 854,728 1,197,406 (28.6%)

Net Income

(Loss) for the

period (3,403,305) 22,209 (15424.0%) (3,489,171) 711,208 (590.6%)



Loss per share

for the period

Basic and fully

diluted loss

per share ($0.04) na ($0.04) na

Weighted Average

Number of

Shares

Outstanding 83,819,620 nil 79,434,174 nil



Adjusted EBITDA



Three Months Three Months Six Months Six Months

Ended Ended Percentage Ended Ended Percentage

Jun-30-2018 Jun-30-2017 Change Jun-30-2018 Jun-30-2017 Change

EBITDA

Net profit

(loss) before

taxes (2,889,212) 500,464 (677.3%) (2,634,443) 1,908,614 (238.0%)

Add back:

Net change in

Bio Asset

valuation 164,358 (774,970) na 68,926 (2,375,657) na

Non-cash

Compensation

Expense 1,596,134 - na 1,596,134 - na

Depreciation

and

amortization 29,077 28,804 0.9% 61,440 57,239 7.3%

Depreciation

included in

COGS 129,334 119,068 8.6% 258,787 236,651 9.4%

Other

(Income)

Expense -

one time RTO

related

costs 1,769,218 255,218 593.2% 1,887,669 488,337 286.6%

EBITDA 798,909 128,584 521.3% 1,238,512 315,184 292.9%



Summary of Quarterly Results



Three months

ended Jun-30-2018 Mar-31-2018 Dec-31-2017 Sep-30-2017 Jun-30-2017 Mar-31-2017 Dec-31-2016 Sep-30-2016

US$ $ $ $ $ $ $ $ $

Total revenue 4,426,197 3,600,482 3,382,717 3,025,048 1,461,779 1,134,434 840,009 499,860

Net income

(loss) (3,403,305) (85,868) 340,621 280,348 11,087 189,485 (660,597) (424,386)

Comprehensive

Net Income

(loss) (3,403,305) (85,868) 340,621 280,348 11,087 189,485 (660,597) (424,386)

Net Income

(loss) per

share (0.04) (0.00) n/a n/a n/a n/a n/a n/a

Total assets 26,942,786 9,081,603 8,558,870 7,546,186 7,463,866 6,836,301 5,062,394 5,177,915

Total

liabilities 5,957,754 8,314,441 11,040,144 11,680,362 11,760,007 10,986,251 8,365,209 8,538,183

Working

capital

(deficiency) 17,236,373 1,344,989 1,197,763 2,178,498 2,218,708 1,670,162 (536,659) 254,038

(MORE TO FOLLOW) Dow Jones Newswires

August 29, 2018 06:30 ET (10:30 GMT)





Dividends - - - - - - - -

declared



Daily Traffic and Average Customer Spend



Six Six Three Three Three Three

Months Months Months Months Months Months

Ended Ended Ended Ended Ended Ended

30/Jun/18 30/Jun/17 % Change 30/Jun/18 30/Jun/17 % Change 31/Mar/18 31/Mar/18 % Change

Average

Daily

Traffic 638 198 222.6% 693 226 206.0% 581 168 245.3%

Average

spend

per

customer $69.95 $72.97 (4.1%) $70.22 $70.96 (1.0%) $69.61 $75.74 (8.1%)



Outstanding Shares

As at the date of this report, the Company had 62,008,400 common shares and 55,232,940 class A convertible, restricted voting shares issued and outstanding for a total of 117,241,340 shares outstanding. There were 820,000 options issued and outstanding of which 258,750 have fully vested. There were 17,214,795 warrants outstanding and 5,638,358 RSU's outstanding of which 1,879,453 RSUs had fully vested as at June 30, 2018 and at the date of this report.

Conference Call

Planet 13 will host a conference call on Wednesday, August 29, 2018 at 8:00 a.m. ET to discuss its second quarter financial results and provide investors with key business highlights. The call will be chaired by Bob Groesbeck, Co-CEO, Larry Scheffler, Co-CEO, and Dennis Logan, CFO.

CONFERENCE CALL DETAILS

Date: August 29, 2018 | Time: 8:00am EST

Participant Dial-in: 416-764-8688 or 1-888-390-0546

Replay Dial-in: 416-764-8677 or 1-888-390-0541

(Available for 2 weeks)

Reference Number: 689023

Listen to webcast: https://bit.ly/2n9BSgc

For more information, please visit https://www.planet13holdings.com/ and follow on Instagram planet13dispensary, Facebook Planet 13 Las Vegas and Twitter @Planet13lv.

(1) Based on customer feedback scores of 4.7-4.9 on a 5-pt scale from Leafly,

Weedmaps, and Google

(2) Monthly growth rates are sequential compound annual growth rates from

January 1, 2018 to July 31, 2018

Financial Measures

There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization) is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles and is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

About Planet 13

Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas - the entertainment capital of the world. Planet 13's mission is to build a recognizable global brand known for world class dispensary operations, and a creator of innovative cannabis products. Planet 13's shares trade on the Canadian Stock Exchange (CSE) under the symbol PLTH.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward looking-statements relate to, among other things, future potential local, regional and national expansion plans, including the completion of the construction of the Company's Superstore within the projected timeline or at all, estimated foot traffic at the Company's proposed retail locations, anticipated revenue and cash flow growth from the Superstore, anticipated approval of the Company's on-site lounge concept at the Superstore, and the ability to enter into third party supply agreements for cannabis and cannabis related products on terms favorable to the Company or at all.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; changes in project development and construction time frames, risk related the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs associated with the completion of the Company's Superstore; fluctuations in securities markets; expectations regarding the size of the legal Nevada and U.S. cannabis markets and changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in the State of Nevada; and employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Future-orientated financial information and financial outlook information (collectively, "FOFI") contained in this news release, as such terms are defined by applicable securities laws, is provided for the purpose of providing information about management's current expectations and plans relating to the future. FOFI contained in this news release was made as of the date of this news release and was provided for the purpose of disclosing material undisclosed information pertaining to the Company. The Company disclaims any intention or obligations to update or revise any FOFI contained in this news release unless required by applicable law. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States through its subsidiary MMDC. Local state laws where MMDC operates permit such activities however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's Listing Statement dated May 24, 2018 filed on its issuer profile on SEDAR at www.sedar.com.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at As at

30-Jun-18 December 31,

2018 2017

Assets

Current Assets

Cash and cash equivalents 17,109,458 451,869

HST receivable 55,080 -

Inventory (Note 7) 1,183,893 966,622

Biological assets (Note 8) 2,637,409 2,706,335

Prepaid expenses 733,401 92,129

Total Current Assets 21,719,240 4,216,955

Property and equipment (Note 9) 5,223,546 4,341,915

5,223,546 4,341,915

Total Assets 26,942,786 8,558,870

Liabilities

Current Liabilities

Accounts payable and accrued liabilities 827,255 678,319

Accrued expenses 1,501,228 1,055,829

(MORE TO FOLLOW) Dow Jones Newswires

August 29, 2018 06:30 ET (10:30 GMT)

Planet 13 Announces Record Revenue and Adjusted -3-



Income taxes payable 2,140,064 1,270,862

Notes payable - current portion (Note 10) 14,320 14,182

Total Current Liabilities 4,482,867 3,019,192

Notes payable - long-term portion (Note 10) 921,031 925,890

Notes payable - related party (Note 10) - 6,526,732

Deferred tax liability 553,856 568,330

1,474,887 8,020,952

Total Liabilities 5,957,754 11,040,144

Shareholders' Equity

Share capital (Note 12) 21,111,565 -

Restricted share units (Note 12) 1,446,512 -

Warrants (Note 12) 4,247,779 -

Contributed surplus (Note 12) 149,622 -

Deficit (5,970,445) (2,481,274)

Total Shareholders' Equity 20,985,032 (2,481,274)

Total Liabilities and Shareholders' Equity 26,942,786 8,558,870



CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS)

Three months Three months Six months Six months

Ended Ended Ended Ended

June 30, June 30, June 30, June 30,

2018 2017 2018 2017

Revenue

Revenues, net of

discounts 4,426,197 1,461,782 8,026,679 2,596,215

Gain on

Biological

Asset

Transformation 1,058,531 774,970 3,189,227 2,375,657

Cost of Goods

Sold (3,105,592) (830,114) (7,214,697) (1,450,086)

Gross Profit 2,379,136 1,406,638 4,001,209 3,521,786

Expenses

General and

Administrative

(Note 11) 1,644,556 589,735 2,755,501 1,021,788

Sales and

Marketing 229,363 32,417 334,909 45,808

Depreciation and

Amortization 29,077 28,804 61,440 57,239

Non-cash

Compensation

Expense 1,596,134 - 1,596,134 -

Total Expenses 3,499,130 650,956 4,747,983 1,124,835

Income (Loss)

From

Operations (1,119,994) 755,682 (746,774) 2,396,951

Other (Income)

Expense:

Interest

Expense, net 121,405 255,218 239,857 488,337

Foreign exchange

(gain) loss 266,521 - 266,521 -

RTO acquisition

costs 532,367 - 532,367 -

(Gain) loss on

conversion of

debt (Note 10) 848,925 - 848,925 -

Total Other

(Income)

Expense 1,769,218 255,218 1,887,669 488,337

Net loss for the

period before

tax (2,889,212) 500,464 (2,634,443) 1,908,614

Provision for

tax - current

(Note 15) 514,093 478,255 854,728 1,197,406

Net Income

(Loss) for the

period (3,403,305) 22,209 (3,489,171) 711,208



Loss per share

for the period

Basic and fully

diluted loss

per share ($0.04) na ($0.04) na

Weighted Average

Number of

Shares

Outstanding 83,819,620 nil 79,434,174 nil



CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months Six months

Ended Ended

June 30, June 30,

2018 2017

Operating activities

Net loss for the period (3,489,171) 711,208

Add (deduct) non-cash items:

Non--cash compensation expense 1,596,134 -

Depreciation and amortization 320,227 293,890

Unrealized foreign exchange (gain) loss 138,075 -

Loss on conversion of debt 848,925

Non-cash interest expense 217,048 231,210

(368,763) 1,236,308

Net change in non-cash working capital

Sales tax recoverable 47,060 -

Inventory (217,271) (460,644)

Biological assets 68,926 (2,375,657)

Prepaid expenses (641,272) -

Income tax payable 869,202 389,683

Net change in deferred tax liabilities (14,474) 977,587

Accounts payable and accrued liabilities 561,182 174,328

Cash flow provided by (used in) operating

activities 304,590 (58,395)

Investing activities

Purchase of property, plant and equipment (1,201,858) (69,613)

Cash flow used in investing activities (1,201,858) (69,613)

Financing activities

Issuance of common shares and warrants 19,508,446 -

Share and warrant issuance costs (1,783,390) -

Issuance of long-term debt - -

Principal repayment on equipment finance

lease (2,721) (6,922)

Repayment of long-term debt - -

Cash flow provided by (used in) financing

activities 17,722,335 (6,922)

Effect of foreign exchange on cash (202,155) -

Net increase (decrease) in cash and cash

equivalents during the period 16,622,911 (134,930)

Cash and cash equivalents at beginning of

period 451,869 20,868

Net cash acquired on the RTO acquisition 34,678 -

Cash and cash equivalents at end of period 17,109,458 (114,062)



SOURCE Planet 13 Holdings Inc.

View original content: www.newswire.ca/en/releases/archive/August2018/29/c7866.html

/CONTACT:

Jonathan Ross, Lode Rock Advisors Inc., Planet 13 Investor Relations, [e-mail], 416-283-0178; Robert Groesbeck or Larry Scheffler, Co-Chief Executive Officers, [e-mail]

/Web site: https://planet13lasvegas.com/

Copyright CNW Group 2018

> Dow Jones Newswires

August 29, 2018 06:30 ET (10:30 GMT)