Planet 13 stock is moving higher by over 2% on Friday after Planet 13 Holdings (CSE:PLTH) (OTCQB:PLNHF) announced it has received final permits to begin production at its 15,000 square foot customer-facing production facility.
Key Development
While it is true that the cannabis industry has gone through a period of trouble over the past months, it cannot be denied that most of the companies in the sector have not stopped their efforts to grow their businesses. One such company is the Nevada-based vertically integrated cannabis firm Planet 13 Holdings Inc.
Today, the company made a major announcement with regards to its customer-oriented production facility. The company announced that the 15,000 square foot facility has been awarded the final permits, and Planet 13 can now begin production.
The facility in question is equipped with state-of-the-art machines that would lower costs and allow the company to process 600 pounds of cannabis biomass per day. The facility, which is going to be situated beside the Planet 13 Cannabis Entertainment Complex, is expected to raise the production capabilities of the company by as much as 1,300%.
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Planet 13 stock is up 2.20% at $1.82 on the CSE.
It goes without saying that this is a significant development for the company. Bob Groesbeck, who is the Chief Executive Officer of Planet 13, stated, “We expect with the increase in production capacity to be able to capture a much larger share of SuperStore sales and expand into the wholesale market."
Planet 13 Holdings has made its name as one of the biggest players in the state of Nevada and also operates the biggest cannabis dispensary worldwide in Las Vegas. The site sprawls over an area of 112,000 square foot. In this regard, the most important thing to consider is the fact that Nevada is expected to become the biggest cannabis spender per capita by 2024.
Currently, Planet 13 accounts for 10% of the market in the state. In addition to that, the company releases data regularly with regard to the spending of customers at its store. The average spending on a ticket has gone up to $13.00 in September and the number of daily visitors has soared by 100%.
Planet 13 stock has tumbled 50% from its recent peak price of $3.50 CAD.
Featured image: Canva
