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StaffNovember 8, 2022


The Daily Hit is a recap of cannabis business news for Nov. 8, 2022.


Planet 13 Picks Waukegan Over Chicago

Las Vegas-based cannabis company Planet 13 has decided to open its Illinois retail shop in Waukegan. Planet 13 partnered with Chicago-area social equity applicant Frank Cowan to win one of 185 new retail licenses that recently were issued by the state of Illinois. Read more here.

Star Buds Cannabis Owner Stays Afloat as Debt Deepens

CordovaCann Corp. (CSE: CDVA) (OTCQB: LVRLF) rose in trading Tuesday after it published its financial statement for fiscal 2022, which showed improvements in revenue and cost control despite operating with a heavy deficit. Cordova recorded $13.5 million in revenues, up 23% versus $10.3 million the year prior, primarily driven by the growth of the Star Buds Cannabis Co. retail footprint in Canada, the company said. Read more here.

Nova Sees Record Profits As It Trims Losses With Value Brand

Nova Cannabis Inc. (TSX: NOVC) recorded a net loss of $1.5 million versus $6.2 million loss last year; slightly up from a $1.4 million loss in the previous quarter. The company attributed the reduction in loss over the year primarily a result of the increase in sales and gross margin. Read more here.

AFC Gamma’s Net Income Rises 45%

AFC Gamma, Inc. (NASDAQ: AFCG) announced its financial results for the third quarter of 2022. with a net income of $11.5 million or $0.57 per basic weighted average share of common stock. This is a 45% increase in net income from last year’s third quarter. It missed Zack’s estimate, which was listed at $0.67 per share. Read more here.


Pineapple Ventures

A pair of investors who said an affiliate of California pot firm Pineapple Ventures owed them $75,000 stemming from a financing deal have come to a conditional settlement in the case, a recent court filing shows. Anna Vocino and Alfred Loren Tarquinio had said in their Los Angeles County Superior Court suit that they agreed to lend money to defendant Neu-Ventures Inc. Read more here.

CNBX Pharmaceuticals

CNBX Pharmaceuticals Inc. (OTCQB: CNBX), a global leader in the development of cancer related cannabinoid-based medicine, has acquired a controlling interest in TaGeza Biopharmaceuticals Ltd. Co-founder Benjamin Dekel will continue to serve as the company’s chief scientist, and CNBX Chairman Gabriel Yariv will assume the position of TaGeza Biopharmaceuticals CEO. Read more here.

StaffNovember 8, 2022


This story was reprinted with permission from Crain’s Chicago Business and written by John Pletz.

Las Vegas-based cannabis company Planet 13 has decided to open its Illinois retail shop in Waukegan.

The company had considered several downtown Chicago locations, including the former Rainforest Cafe in River North, but decided on the suburbs instead. Planet 13 partnered with Chicago-area social equity applicant Frank Cowan to win one of 185 new retail licenses that recently were issued by the state of Illinois.

“We looked everywhere in the region. We were kicking a lot of tires in the city, downtown and elsewhere,” said Bob Groesbeck, co-CEO of Planet 13. “Waukegan checked the boxes: proximity to an area that’s not oversaturated, the ability to drive some traffic down from Wisconsin. There’s very supportive local government and not a lot competition because a lot of communities in the area opted out” of recreational cannabis.

“We looked at a number of locations downtown. But for whatever reason, we couldn’t make them work. There were a host of issues downtown. We were concerned about potential saturation.”

Groesbeck did not say when he expects the dispensary, in Fountain Square, will open. At 4,000 square feet, the Waukegan location will be much smaller than Planet 13 stores in Las Vegas and Orange County, Calif., which have about 25,000 square feet of retail space. “It’s going to have some pizazz and excitement,” Groesbeck says.

Because of its dense population and tourism, Chicago was expected to be the most popular destination for dispensaries once Illinois legalized recreational marijuana use. But winning zoning approval proved to be time consuming, so many cannabis companies opted for the suburbs instead.

There are more than a dozen applications for new cannabis dispensaries pending before the Zoning Board of Appeals. A handful of stores, including a shop backed by restaurant owner Phil Stefani, have received approval.

Illinois is on pace to see about $1.5 billion in weed sales this year, up about 10% from 2021. But the pace of growth has slowed, in part because of a lack of new stores. Getting new retail stores open is critical to jump-starting sales growth.

Adam JacksonAugust 15, 2022


Planet 13 Holdings (OTC: PLNHF) posted results that missed expectations — showing how waning demand and slimming margins are affecting even the largest operators.

The Nevada-based cannabis superstore delivered its financial results for the second quarter ending June 30, 2021.

Planet 13 reported approximately $28.4 million in revenue during the period, a 15.5% loss versus the same period last year — below analysts’ estimates for revenues of $33 million. Despite that, revenue this quarter is still up from $25.7 million in the previous period.

Planet 13 also reported a second-quarter net loss of $2 million versus a $2.1 million loss sequentially; and a net loss of $5.6 in the same period last year. The earnings were for a loss of once cent per share — beating analyst expectations of a three-cent loss per share — versus a loss of two cents per share in the previous quarter.

“Since we reported Q1 we’ve seen a material weakening of the consumer, which has impacted tourist spending in Nevada,” said Co-CEO Larry Scheffler. “Despite this, we have been able to maintain above 9% retail market share. We are taking steps as a Company to improve resiliency in the face of this new macro dynamic. During the quarter all of our brands held or gained share in Nevada according to research firm Headset. We also launched our owned brands in California for the first time, starting with the widely popular TRENDI products.”

The company posted an adjusted EBITDA of $3 million this quarter versus a loss of $7.2 million

Planet 13 had $52.6 million worth of cash on hand versus $61.6 million this time last year; total assets of $268.4 million as versus $216.8 million in the same period last year; total liabilities of $35.5 million versus $43.1 million in the same quarter last year.

“Q2 was a big quarter for advancing our growth initiatives,” said Co-CEO Bob Groesbeck. We secured our cultivation property in Florida. We entered into an option agreement to purchase the remaining ownership in our subsidiary which holds an Illinois dispensary license. In Nevada, consumption lounge legislation was finally passed and we’ve completed our premium, indoor cultivation expansion and are just waiting on final approvals. Our expansions are progressing according to plan and it is likely that a year from now we will have doubled our retail and state footprint.”

Debra BorchardtAugust 5, 2022


The Nevada-based cannabis superstore Planet 13 Holdings (OTC: PLNHF) announced that it has signed an option to potentially buy out its social equity partner in Illinois. The company said it has reached a deal with Frank Cowan, who owns 51% of Planet13 Illinois, to gain a controlling interest. If exercised, Cowan would receive $866,250 in cash and 1,063,377 common shares of Planet 13 valued at $2 million based on a 5-day VWAP. He would also face restrictions on when he could potentially sell those shares.

“We are pleased to enter into this agreement with our partner to give us the option to assume full control of the Illinois dispensary upon receipt of regulatory approvals. Frank Cowan has been a pleasure to work with, and we look forward to continuing that partnership,” said Bob Groesbeck, Co-CEO of Planet 13. “As a limited-license state, Illinois remains a premier cannabis marketplace, and this opportunity creates value for all Planet 13 stakeholders. This is another example of us acquiring a dispensary at a very reasonable price. Our prudent approach to M&A is one of the reasons we have no debt and such a robust balance sheet.”

Social Equity Applicant

Cowan was the recipient of 185 new licenses issued by the state in an effort to combat corporate cannabis and give an opportunity to those from areas that had been hurt by the war on drugs. However, the costs to enter the cannabis industry are high and many of these social equity applicants rely on partnerships with well-funded companies to see the opportunity to come to fruition. Crain Chicago wrote about Cowan at the time saying, “‘They didn’t find me. I found them,’ Cowan says of Planet 13. He was already planning to apply for a retail license when he went to Las Vegas for a boxing match two years ago. While he was there, a friend who knew an acquaintance of Planet 13 co-founder Larry Scheffler arranged a tour of the company’s just-opened store near the Las Vegas Strip.”

Crain Chicago reported that “Planet 13 wants to make a splash here, building something akin to its flagship store in its hometown of Las Vegas, which tops 100,000 square feet, with high-tech entertainment including interactive laser displays, LED floors and a graffiti wall. The company will be looking for a high-traffic location in the Chicago area, not a blighted neighborhood.”

To Sell or Not to Sell

The article says that at that time Cowan said he was in no hurry to sell. “I plan to have some type of part in Planet 13. I want to make sure we have representation in an industry that has little minority representation.” Yet, Scheffler made it clear at the time what his plans were. The article said that Scheffler stated Planet 13 would eventually want to acquire majority control so the company could incorporate the financials into its results. “It’s got to be fair to him,” he says.



StaffMay 16, 2022


Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) announced its financial results for the three-month period ended March 31, 2022, with revenues rising 8% to $25.7 million from last year’s $23.8 million. However, Planet 13’s revenue fell sequentially from the fourth quarter’s $29 million. According to Yahoo Finance, three analysts cover the company and the average estimate for revenues was $46 million, so the company missed that by a mile.

Net income was before taxes of $0.7 million as compared to a net loss of $2.7 million, the company reported a net loss of $2.1 million as compared to a net loss of $6.0 million.

“While January and February were seasonally slow, we saw traffic start to pickup in March. Despite the lower tourist numbers, the Las Vegas SuperStore and our Medizin dispensary continue to compete very well taking a strong share of the overall Nevada market” said Larry Scheffler, Co-CEO of Planet 13. “Our branded products are performing well with wholesale continuing to grow nicely in Nevada. We are proud to have closed the acquisition of Next Green Wave in March and begin to bring our brands to California.”

After the quarter ended, Planet 13 announced the expansion of its Nevada cultivation to fuel in-house product growth and the expansion of STIIIZY partnership with a new shop-in-shop at the Las Vegas SuperStore. In California, the company announced the launch of the TRENDI brand into California. On May 10, 2022, Planet 13 announced it has entered into a lease for its second Florida dispensary location.

“We continue to make progress on our Florida roadmap working in dual tracks to bring cultivation and retail online. We are excited to drive growth throughout 2023 from our Florida operations,” commented Bob Groesbeck, Co-CEO of Planet 13. “In Nevada, we’ve begun the expansion of our cultivation facility to expand supply of our incredibly popular premium flower line.”

Planet 13 has cash of $62.1 million versus last year’s $61.6 million for the same time period.

Planet 13’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

Debra BorchardtMarch 28, 2022


Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) announced its financial results for the fourth quarter and year ending December 31, 2021. Planet 13 reported revenues rose 48% to $29.9 million versus last year’s $20.1 million for the same time period. The revenues dropped sequentially from the third quarter’s revenues of $32 million. The net loss before taxes declined to $1.3 million as compared to a net loss of $18.7 million. the company also trimmed the total net loss to $5.1 million as compared to a net loss of $18.2 million.

2021 Results

For the full year, Planet 13 reported revenues rose 70% to $119.5 million as compared to $70.5 million. The net loss before taxes of $6.0 million as compared to a net loss of $17.9 million. The company also trimmed the net loss to $19.5 million as compared to a net loss of $25.0 million. The company said that the  increase in wholesale transactions during the period, the re-opening of the Medizin Dispensary in late November 2020 and the addition of revenue from the recently opened Planet 13 OC Superstore in Santa Ana, also contributed to the increase in overall revenue when compared to the year ended December 31, 2020 that was negatively impacted by the COVID-19-related shutdowns.

“During a quarter that is seasonally slower and marked by significantly less tourist traffic, Planet 13 was able to maintain a market share above 10% in the Las Vegas cannabis market. In addition to the competitive performance demonstrated by our SuperStore and neighborhood store, our brands grew 21% in a market that was down 5% in Q4[2],” said Larry Scheffler, Co-CEO of Planet 13. “Similarly, while the California market was down sequentially in Q4 [3] , our Orange County store grew 7.2% in the quarter on the back of increased brand awareness.”


The company acquired a Florida license in October 2021. On March 17, 2022, Planet 13 announced the initiation of its Florida dispensary roadmap with a lease for its first dispensary in Jacksonville.
On August 5, 2021, the subsidiary, Planet 13 Illinois LLC, which is owned 49% by Planet 13 and 51% by Frank Cowan, a resident of Illinois, was a lottery winner for a Social-Equity Justice Involved Conditional Adult Use Dispensing Organization License in the Chicago-Naperville-Elgin region from the Department of Financial and Professional Regulation in the State of Illinois. “We intend to open a dispensary in the downtown Chicago area and anticipate that it will be operational in late 2022. On October 5, 2021, we formed Planet 13 Chicago, LLC as a 100% owned leasing entity to support future operations in Illinois.”

“Over the last couple of months, the Planet 13 team has been working hard to operationalize all of the exciting new assets we’ve acquired over the past year. We are making strong progress on our Florida roadmap working in dual tracks to bring cultivation and retail online,” commented Bob Groesbeck, Co-CEO of Planet 13 . “In California, we closed the acquisition of Next Green Wave in March allowing us to become vertically integrated in the state and bring our award-winning brands to Planet 13’s California fans.”

StaffDecember 21, 2021


Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) is buying Next Green Wave Holdings Inc. (CSE: NGW)(OTCQX: NXGWF) in a deal valued at approximately C$91 million ($70 million). Planet 13 is paying a premium of 44% to the shareholders based on the company’s average share price over the last ten days.

Next Green Wave is an integrated premium seed-to-shelf craft cannabis producer offering products through its in-house brand portfolio and wholesale flower for other large cannabis manufacturers. The company owns and operates a 35,000 sq. ft. indoor facility in Coalinga, CA, which is home to its nursery, cultivation, distribution, and future packaging business. Planet 13 said it plans on keeping the company’s management team.

“Today’s announcement is an extension of the strategy we’ve laid out for investors of adding cultivation and production in California to vertically integrate and bring our highly popular brands into the state. We are methodically expanding our footprint to drive topline growth and improved profitability,” said Bob Groesbeck, Co-CEO and Co-founder of Planet 13. “We’ve been incredibly impressed by the Next Green Wave team and their ability to generate revenue and Adjusted EBITDA based on the quality of their cultivation and manufacturing in this very competitive market.”

Planet 13 said that the deal is expected to be immediately accretive to 2021 and 2022 EBITDA. The company also said that the structure provides meaningful price protection against market volatility in Planet 13’s share price up to the completion of the transaction. In addition to that Planet 13 said that NGW’s operations will serve as the backbone of its continued focus on the California market. NGW will enable Planet 13 to introduce its diverse brand portfolio of exotic, pheno-hunted cultivars to the Santa Ana SuperStore as well as across the state.

“This is an exciting day for Next Green Wave shareholders. Planet 13 has proven its ability to run incredibly productive retail locations and create manufactured products that command a significant share of sales in their home state of Nevada,” said Mike Jennings, CEO of Next Green Wave. “They are a perfect fit for Next Green Wave, and being a part of their attractive growth profile and expansion in Illinois and Florida is the correct next step for NGW.”

For their part, NGW shareholders will immediately benefit from the enhanced size, scale and liquidity of Planet 13’s capital markets presence. NGW Shareholders will participate fully in the upside of Planet 13’s upcoming expansions into Illinois and Florida.


Video StaffNovember 1, 2021


We haven’t been to Planet 13 Las Vegas since the 2019 MJ Biz conference. Back then it was only a dispensary. Now, this dispensary has over 80 registers, a restaurant, a bar, a clothing shop, and the ability to watch the company make edibles. Coming soon there will be fighting robots in the candy factory and a cannabis history museum. Green Market Report had a chance to speak with Co-CEO Larry Scheffler about the company’s growth.

Debra BorchardtOctober 27, 2021


The state of Nevada has joined the billion-dollar bud club as the Nevada Cannabis Compliance Board (CCB) and the Nevada Department of Taxation (DoT) released figures showing more than $1 billion in taxable sales reported by Nevada’s legal cannabis industry over a 12-month period. The agencies noted that during the Fiscal Year 2021 (July 1, 2020 – June 30, 2021), licensed adult-use cannabis retail stores and medical dispensaries generated $1,003,467,655 in taxable sales. Th groups stated that this is an increase of more than $318 million versus the $685 million in taxable sales from the fiscal year 2020. The majority of sales took place in Clark County and unincorporated cities in Southern Nevada.

Provided by CCB/DOT

Schools received over $67 million from the CCB, representing combined revenue from the State Wholesale Cannabis Excise Tax, along with civil penalties, licensing, and other fees collected through regulation of the cannabis industry. In addition to that, over $92 million in Retail Cannabis Excise Tax Revenue was sent to the school’s distributive account in FY 21.
In 2019, Governor Sisolak signed SB 545, which stated all revenue from the 10% retail cannabis excise tax would be sent to the Distributive School Account.

“This is what Nevadans expected since the legalization of recreational marijuana,” Governor Steve Sisolak said. “Education remains one of my top priorities, and I’m proud to see promised tax revenue from cannabis sales directly funding our students and classrooms.” The CCB officially began regulating Nevada’s cannabis industry on July 1, 2020, transitioning oversight
from the DoT’s Marijuana Enforcement Division.

Nevada Cannabis Statistics

There are now 346 certified medical cannabis establishments in the state and 408 licensed recreational cannabis establishments. 336 entities hold dual licenses. There are 87 active dispensary/retail stores in the state.

Planet 13

One of the best-known operators in the state, Planet 13 Holdings Inc. (OTCQX: PLNHF) reported $11.9 million in sales during July. During the first month of operations, the new Orange County store generated ~$800 thousand in sales. In September, the company doubled the size of the Las Vegas superstore cannabis retail area by adding 40 registers for higher sales volume and faster customer checkouts. The store also added an additional reception desk in order to better address the crowds of shoppers.

“Based on the early results we’ve seen from the Orange County store we are confident in the trajectory of sales and the quality of service and product we are providing. Sales have grown week over week as we start to gain traction as one of the top dispensaries in Orange County,” said Bob Groesbeck, Co-CEO of Planet 13. “Looking back at the early days of Planet 13 Las Vegas is a good reminder that it takes time to build customer trust and awareness. We took that dispensary from generating around $3 million a month to now north of $9 million with gross margins above 50%, all by focusing on the customer and continuing to refine and improve the experience and product selection.”

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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By continuing I agree to your Privacy Policy and consent to receive relevant newsletters and other email communications on events, editorial features, and special partner offers from Green Market Report. I can unsubscribe or change my email preferences at any time.