#KahliBuds #MMJ #CBD #THC

Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNH) reported unaudited preliminary financial results for the fourth quarter and full year ended December 31, 2023 after the markets closed on Tuesday.

Revenue fell in the fourth quarter by 7.5% to $23 million from last year’s fourth quarter revenue of $24.8 million. Net losses for the year improved dramatically from 2022’s $38.6 million to just $14.3 million. Another positive metric was that operating expenses fell by 60% to $18.1 million from last year’s $45.9 million.

Revenue also fell for the full year from $104 million in 2022 to $98.5 million. Unfortunately, net losses for the year jumped from 2022’s $59.5 million to $73.6 million.

“Given the turbulence of the last few months, the challenging macroeconomic backdrop, and the continued cannabis price compression we are seeing, I am pleased to report a solid quarter. We generated solid revenue performance and positive Adjusted EBITDA, driven by gross margin expansion and strong cost controls. We continue to hold ~9% of Nevada’s retail market share and top five brands in every category, demonstrating the strength of our Nevada operations and brand value,” said Larry Scheffler, Co-CEO of Planet 13. “In spite of recent events, Planet 13 is generating positive Adjusted EBITDA and continues to have a strong balance sheet with over $17 million in cash and effectively no debt. We are well capitalized to continue executing our announced growth plan in Florida and Nevada.”

“Towards the end of the quarter, we opened our new Illinois location and are working towards closing our acquisition of VidaCann and opening our consumption lounge at the Las Vegas SuperStore. These exciting additions are set to drive Planet 13’s next leg of growth,” said Bob Groesbeck, Co-CEO of Planet 13. “We’ve built an attractive portfolio of operations in highly sought-after states. As we look to 2024, our goal 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 cashflow and shareholder value.”

Cash affected by Casa Verde lawsuit

The company said it ended the year with a total cash of $17.4 million. However, last week the company amended its 2022 annual statement and addressed the cash question stating that all financial statements included in the reports should no longer be relied upon due to material errors due to the believed misappropriation of approximately $22 million of the company’s funds held by El Capitan. “The impact of correcting these items was the recognition of a total of $16,283,225 provision for the misappropriated cash that has been reflected in the Affected Financials in the periods when the misappropriation occurred as reflected in the restated financial statements, said the company filing.

Planet 13 said it had hired El Capitan Advisors, Inc. for cash management services. One of Planet 13’s accounts managed by El Capitan was held at Bridge Bank, a division of Western Alliance Bank (WAB). According to a dispute unrelated to the company, Planet 13 said in its filing, “Casa Verde Capital, L.P. and Casa Verde Capital EF, L.P. obtained a $35 million default judgment against El Capitan, which is a portfolio company of Casa Verde. Casa Verde then levied that judgment causing approximately $5.4 million of the Company’s funds held at WAB and managed by El Capitan to be directed to the Orange County, California Sheriff’s Office on September 21, 2023.”

Planet 13 said it secured a partial settlement with Casa Verde for the release of $3.4 million of the WAB Funds, which the Company received on January 31, 2024. The filing stated, “The remaining approximately $2 million of the WAB Funds are still in the possession of the Sheriff’s Office while litigation is ongoing. The Company has not relinquished any right to the Remaining Levied Funds and continues to pursue their return. A hearing on the ultimate disposition of the Remaining Levied Funds is scheduled for April 29, 2024.”

The filing went on to say, “After filing the WAB Claim in November 2023, the Company also took immediate action to withdraw the remaining approximately $16.5 million that the company held in two additional Company accounts managed by El Capitan. El Capitan has refused to honor the Company’s further withdrawal requests with respect to the Additional Funds and at this time it is unclear whether the Additional Funds will be returned. Based on discussions with El Capitan to secure the withdrawal of the Additional Funds and purported bank statements provided by El Capitan, the Company has reason to believe that the Additional Funds were misappropriated by El Capitan.”

 

Planet 13 plans to release its complete financial results for the fourth quarter and full year 2023 on March 13, 2024.

The post Planet 13 cuts expenses and net losses in the fourth quarter appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife