Las Vegas-based Planet 13 Holdings (CSE:PLTH) (OTCQB:PLNHF) has been one of the more interesting cannabis companies in recent times, and this week, the stock has been on fire. On Tuesday, the company announced its financial results for the first fiscal quarter, and since then, the stock has rallied by as much as 25%.
The company reported revenues of $16.8 million for the quarter, which reflects a year on year rise of as much as 21.4%. On the other hand, Planet 13 also managed to generate gross profits of as much as $9 million before adjustments.
The company made a net loss of $1.4 million in the quarter, but adjusted EBITDA was positive $2.5 million. It was during the first quarter that Planet 13 launched an around the clock delivery service and also completed an expansion of its online ordering arm. The Chief Executive Officer of the company Larry Scheffler, said that despite the coronavirus induced decline in traffic at the store, the performance from Planet 13 was ‘solid’ in the first quarter. The company has differentiated itself from many other cannabis dispensary operators in the industry by virtue of its Superstore in Las Vegas.
In addition to a sprawling cannabis marketplace, the Superstore offers a unique experience to customers. The store is equipped with a coffee shop a well as a restaurant, among other things, and in addition to that, it is located on the iconic Las Vegas strip. Hence, the store is almost always going to attract a fair number of customers throughout the year.
However, the coronavirus pandemic came as a definite blow for the company. Once the nation opens up, Planet 13 would want to continue from where it left off. In 2019, the Superstore attracted s many as 1 million visitors and made up a whopping 9% of all cannabis sales in the state of Nevada. Moreover, the Planer 13 stock soared by as much as 80% even though most cannabis stocks were struggling.