Planet 13 Holdings has announced the divestiture of its non-core Orange County, California retail store and the closure of its cultivation facility in Coalinga, California.
These actions mark another step in Planet 13's strategy to focus resources on its highest-performing markets and to position the Company for long-term growth and profitability. Planet 13 will continue to invest in expanding its presence in Nevada and Florida while pursuing disciplined opportunities that enhance shareholder value.
"This reflects our continued commitment to disciplined capital allocation and operational efficiency." said Bob Groesbeck, Co-CEO of Planet 13. "By concentrating our efforts on our strongest markets, we're building a more focused, efficient, and resilient company that's well-positioned for future expansion."
© Planet 13
The Company's California operations, which represented a small portion of the Company's overall revenue, were cash-flow negative and no longer aligned with Planet 13's long-term objectives. Proceeds from the transaction, while not material, will help further strengthen the Company's balance sheet, liquidity and enable investment in core markets.
"We're grateful to our dedicated California team members for their contributions and professionalism during this transition," added Larry Scheffler, Co-CEO of Planet 13.
The sale of the Orange County retail license is subject to customary closing conditions and regulatory approvals. The Company expects the transaction to close within approximately three to four months. The Coalinga facility is expected to wind down operations by the end of 2025.
For more information:
Planet 13
[email protected]
planet13lasvegas.com
