March 20, 2019

Planet 13 Holdings Inc (CNSX:PLTH) Inks Purchase Agreement with Mike Tyson’s Tyson Ranch

Midas Letter
Midas Letter
Planet 13 Holdings Inc (CNSX:PLTH) Inks Purchase Agreement with Mike Tyson’s Tyson Ranch

Planet 13 Holdings Inc (CNSX:PLTH) (OTCMKTS:PLNHF) CEO Robert Groesbeck is thrilled with the company’s partnership with Tyson Ranch, Mike Tyson’s cannabis product line. Groesbeck believes both Planet 13 and Tyson Ranch are trying to create similar experiences for cannabis consumers. The purchase agreement with Tyson Ranch ensures Planet 13 is both the launch partner for Tyson Ranch products in Nevada and includes promotional appearances by Tyson. Planet 13’s Las Vegas-based Superstore sees 2400 cannabis enthusiasts per day, including 1700 daily paid tickets. Groesbeck reveals that because demand has been so strong, Planet 13 has decided to expand its production facility. When finished, the company will be able to supply its Planet 13 Superstore with products such as its successful line of vapes, as well as sell products wholesale throughout the state.


Narrator: Planet 13 Holdings is a vertically integrated cannabis company based in Nevada. The company has production and dispensary operations in Las Vegas, selling both recreational and medical product lines.

Planet 13 Holdings opened its Planet 13 superstore in November 2018. Located in close proximity to the Las Vegas strip and housed in a 100,000 square foot commercial space, the superstore is the largest cannabis entertainment complex located in Las Vegas.

Planet 13 Holdings trades on the Canadian Stock Exchange under the symbol PLTH.

[stock_chart symbol=”PLTH:CNX” align=”left” range=”5D”]

James West:   Robert Groesbeck joins me now via Skype from Las Vegas, Nevada. He’s the CEO of Planet 13 Holdings, trading on the CSE under the symbol PLTH. Robert, welcome back.

Robert Groesbeck:  Oh, thank you. Appreciate you having me back again.

James West:   Robert, you guys have been making some great strides. You’ve signed a purchase agreement with Mike Tyson, you’ve started construction of your 2,000 square foot event space. Why don’t you give me a full update on what kind of progress you’ve made since you were here last, back in, I guess it was the fall last year.

Robert Groesbeck:  Well, we made tremendous progress. The expansion actually, Phase 2, is 23,000 square feet; so a 4,500 square feet of that is devoted to the new restaurant, a coffee shop complex, then we have an event space, you move into a merchandise store, and then about 50,000 square foot production facility. So, pretty ambitious, pretty excited; we’re hopeful that we’ll get that opened early July.

James West:   Right. Great! How many visitors are coming through the space right now?

Robert Groesbeck:  Well, we announced to the market last month, I think paid tickets were just a little over 1,700 a day; actual traffic to the facility, just a little bit over 2,400 a day. So we see a significant uptick in March. It’s projecting and it’s trending exactly like we thought it would.

James West:   Wow, fantastic! So, do most of these people come by, come through and buy cannabis products?

Robert Groesbeck:  Well, most of them do, as evidenced by the paid tickets; but a lot of people, you know, they’re here as tourists, they’re with friends, you know, they may be curious about the facility. They come over in RideShare, cab, or whatever the case may be, or even walk, and you know, not all of them are necessarily going to the dispensary to buy.

So really what we want to do is create that avenue or that opportunity for them to spend elsewhere in the complex, and that’s really what, you know, that’s the impetus behind the restaurant, the retail store, and then of course, you know, again, buying in the production facility, where the customer who maybe is not in the dispensary buying but is actually walking out with products manufactured, and maybe that will incentivize them to come across the hallway and buy, as well.

So again, we’re very excited, you know, where things are trending. It’s exactly what we thought it would be, and in March, we think it’s going to be just a fantastic month for us.

James West:   Great. The State of Alaska was the first state to actually legalize the consumption of cannabis in a public, social environment, and I’m curious as to whether you think that that might be something that could happen in Nevada anytime soon? And if it did, I’m imagining it would really help your business.

Robert Groesbeck:  Well, we think it will. The operative word is, you know, how do you define soon? For us, it’s not a question of if, now, it’s a question of when. We’re optimistic now that the various government leaders have come together, recognized that we’ve got a serious void here in that we encourage tourist customers over 21 years of age to purchase cannabis products, and yet we provide them with no legal ability to consume those products.

So I think there is now a consensus amongst the government types working with the State of Nevada and governments, like, to create uniform standards throughout the State. I think what we want to do is avoid cannabis lounges popping up in every neighbourhood, you know, adjacent to taverns; that was never the intent. The intent was really to create a vehicle or a venue for the tourist customer to use products responsibly and then get back to the hotel rooms. We’re the logical choice for that. We are closest to the heart of the strip, we have the room to grow to build a first-class lounge.

So we’re optimistic. We think we’ve made a lot of progress, so we’re hopefully that it will be sooner rather than later.

James West:   I noticed that you offer free rides to Planet 13 from certain locations in Nevada. Has that been helpful in getting people to come visit you?

Robert Groesbeck:  Oh, yeah, it’s been very helpful; and again, it’s primarily a leading facility. You know, we’ve generated a huge amount of traffic through RideShare and through cabs, but sometimes it gets incredibly busy; customers, you know, want to get out of the facility and leave as quickly as they can. We offer that amenity through our Rap Van service. We’ll take them to designated drop-offs adjacent to the Strip. So it’s worked really well, they really like it, and it’s great advertising for us, as well.

James West:   Yeah. Are there other facilities in Vegas that you have to compete with in terms of providing this sort of live cannabis curated experience?

Robert Groesbeck:  Well, I consider everybody that’s a licensed operator a competitor, it’s just the extent of that competition. We’re really unique. I think we’ve set ourselves aside from the rest of the pack by virtue of our size, our proximity to the Strip, and the various interactive offerings that we provide at the facility. So we’re different. It’s hard, because we’re not really comparing apples and oranges.

James West:   Right. So you also produce your own – you also cultivate your own cannabis, extract and make extracted products?

Robert Groesbeck:  We do. We offer a medicine line, which is, we can’t keep in stock; our baked-ins are probably the best in the industry – I may be a bit biased, of course, but based on the feedback from our customers, I think it’s on the map. Our new trending line came into the market in the latter part of November; we’ve had phenomenal success with that. That’s geared more towards the tourist customer; it’s a disposable cartridge, disposable with vape pen, and we’ve just had tremendous positive feedback on that.

So really, those two lines in particular are the impetus behind the expansion of the production facility; we just can’t meet the demand, so we’re into it head-on, and not only supply the Superstore, but we’ll now have the ability to wholesale our products throughout the rest of the state.

James West:   Yeah. Tell me about your deal with boxing legend Mike Tyson – how present is he going to be at Planet 13?

Robert Groesbeck:  Well, we’re really excited to have that agreement in place with Mike and his team. The Tyson Ranch product line, I think it’s going to be exceptional, and we’re honoured to have him launch that in Nevada, basically a worldwide launch out of the Vargas dispensary on Planet Earth. So we think that’s going to be a long-term relationship. We’re really excited, you know, about that. Mike has a passion for all things cannabis, as does his team, and you know, they manufacture products to the standards that we expect for our customers coming out of this facility.

So we couldn’t be any happier. Again, it’s a great option – we’re really excited about what it brings to both groups going forward.

James West:   Awesome. So I’m wondering, if we came down there for your opening on April 13th with our film crew, would it be possible to organize an interview with yourself and Mike Tyson?

Robert Groesbeck:  I’m reasonably confident we can get you an interview with Mike when he’s here, for sure. He’s very excited.

James West:   Okay. Well, that’s great. Yeah, I think, you know, his celebrity involvement in your operation is pure genius. Now, where is Tyson Ranch, and what’s he exactly doing there? Is he growing cannabis, making extracted products?

Robert Groesbeck:  Well, I don’t know all the inner workings of Tyson Ranch and what they’re doing; they’ve got varying business plans, as well. They’re down in the Palm Springs area. So they’ve got a campus setting, they’ve got very ambitious plans of creating basically an entertainment complex similar to what we’re doing here in Nevada, and you know, I’ll let Mike and his team speak to that. But very exciting. We share a lot of commonality on how we, you know, on how we want the market, the customers we’re looking for, and the experiences that we want to provide to our customers respectively.

So again, we’re very excited about what they’re doing and the ability to partner with them on launching in Las Vegas.

James West:   Sure. All right, well, that’s great, Robert. I will reach out to you soon and get more organized on our visit to your facility, but congratulations on everything you’ve done. You’re making incredible progress, and I can’t wait to see the place for myself in April.

Robert Groesbeck:  Can’t wait to see you down here and show it to you firsthand. Thank you very much.

James West:   Bye for now.

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