Weed Galaxy Watch: Analysis Of Planet 13’s Stock Potential, Vision Amid $22M Cash Adjustment
A $22 million cash adjustment and a delayed Florida VidaCann deal for Planet 13 Holdings Inc. (OTC: PLNH) are key points in Pablo Zuanic‘s latest report from Zuanic & Associates.
Despite these setbacks, the company’s management remained optimistic, backed by expansions in Las Vegas and Illinois, and a significant foothold in the Florida market.
The report noted Planet 13 Holdings’ stock trades at a discount compared to the sector average, offering a unique investment opportunity.
“PLNH still has one the strongest balance sheets in the space,” Zuanic wrote. “The stock has gone from trading in line with the MSO group average to a discount (1.6x proforma vs. 2.2x for the MSO average; almost a 30% discount), and it is down 10% since 11/17/23 vs. +36% for the MSOS ETF in that time.”
Florida Expansion And Market Dynamics
The VidaCann acquisition is a pivotal move for Planet 13 Holdings, with the deal expected to close by April 1, 2024. This strategic expansion into Florida positions Planet 13 Holdings to capitalize on the state’s burgeoning market, especially with the potential legalization of recreational cannabis.
The VidaCann franchise, with 26 stores, ranks ninth in Florida’s cannabis market but …