The cannabis industry has not had a great time of late and that has been reflected in the price action of some of the stock. However, Las Vegas-based Planet 13 Holdings Inc (OTCMKTS:PLNHF) has been an exception in this regard. Over the course of the past month, the Planet 13 stock has gained as much as 20%. The impressive performance might have been due to certain developments in recent days and it could be worthwhile for investors to take a look.
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Public Bought Offering
On Tuesday, Planet 13 announced that it reached an agreement with a group of underwriters with regards to the purchase of 47,00,000 units on bought deal rules. The underwriters are being led by Beacon Securities Limited and Canaccord Genuity Corp.
The units are going to be bought by the underwriters for C$4.30 each and are expected to raise as much as C$20210000 for Planet 13. It is a significant development for Planet 13 and the company aims to use the money for general corporate expenses and for working capital needs.
The units are made up of one common share in Planet 13 and half of a singular common share purchase warrant. One full warrant will allow the holders to get hold of a common share of Planet 13 for C$5.80 each and that price is going to be available for 24 months since November 5, 2020, the closing date of the offering.
Planet 13, which operates a Super Store close to the Las Vegas strip, is dependent on tourism in order to drive its sales. However, tourism has gone down significantly due to the coronavirus pandemic.
The Chief Executive Officer of the company stated this week that although tourism in the city has gone down by as much as 50%, Planet 13 has managed to generate record sales.
The company also announced that it is going to expand its Super Store dispensary and is going to see the installation of an 80-foot video wall. In this regard, it should also be pointed out that back in November, Planet 13 had added 40 new points of sale.
The latest expansion plans from the company are aimed at improving the entertainment offerings at its flagship Super Store. In addition to that, it is also expected to lessen the waiting time for customers and thereby lead to better customer experiences. The expansion is expected to be completed by the time Q1 2021 ends.
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