Planet 13 Holdings Inc. (CSE: PLTH, OTCQX: PLNH) recently announced the pricing of its underwritten public offering of 18.75 million units at $0.60 per unit, resulting in total gross proceeds of approximately $11.3 million. Each unit will consist of one share of the company’s common stock and one warrant, with each warrant entitling the holder to purchase one share of common stock for 5 years following the closing of the offering at $0.77.
The company has also granted the underwriters a 30-day option to purchase any combination of up to an additional 2,812,500 shares and/or warrants to cover over-allotments, if any. If the option is exercised in full, the company will be entitled to roughly $12.9 million from the offering. The offering is expected to close on or about Thursday, March 7.
Planet 13 stated that it intends to use the net proceeds from the offering for working capital and general corporate purposes such as the acquisition of additional retail cannabis licenses in Nevada and the expansion of its retail footprint in Florida and Illinois.
In August, the company entered into a membership interest purchase agreement to acquire all of the ownership interests of Florida-based VidaCann, LLC for $48.9 million. This move was aimed at accelerating the company’s time to market and scale in Florida. Additionally, Planet 13 sold all of the issued and outstanding shares of common stock of Planet 13 Florida, Inc. to SGW FL Enterprises, LLC as a closing condition to the acquisition of VidaCann.
Following the company’s fourth-quarter financial results, co-CEO Bob Groesbeck highlighted the goal for 2024 to prepare for the potential of adult use in Florida and increase scale, efficiency, and operating leverage in core states to drive growth in operating cash flow and shareholder value. The company achieved positive adjusted EBITDA of $1.3 million in the fourth quarter, compared to a loss in the corresponding period of the previous year. Net loss also decreased significantly to $14.3 million from $38.6 million in the fourth quarter of the previous year.
As of the time of writing, Planet 13’s shares traded 0.2274% lower at $91.247 per share. The company continues to make strategic moves to expand its presence in key markets and drive growth in the cannabis industry.
