News Source: Yahoo News
Few, if any, industries have investors more excited right now than cannabis. Depending on your preferred source, the global weed industry could see sales grow from $12.2 billion in 2018 to perhaps $50 billion to $75 billion annually in roughly a decade's time.
But at the heart of that growth is the United States. In Bank of America analyst Christopher Carey's utopian model, whereby the marijuana industry reaches $166 billion in yearly sales, the United States is responsible for generating 34% of this annual revenue. The U.S. is, for all intents and purposes, the crown jewel of the cannabis movement, which is what makes U.S. pot stocks such a potentially hot commodity.
There are a number of popular vertically integrated dispensary operators in the United States that you're probably familiar with, including the relatively upscale MedMen Enterprises, which is attempting to normalize the cannabis-buying experience, or Curaleaf Holdings, which snagged a deal a few months back to get its topical cannabidiol (CBD)-infused products into CVS Health stores. You might also be familiar with Acreage Holdings, the multistate dispensary operator that agreed to be acquired for $3.4 billion by the largest pot stock in the world by market cap, Canopy Growth, if and when the U.S. ever legalizes cannabis at the federal level.
However, it's an under-the-radar pot stock that's really changing the dynamics of the U.S. retail industry, and investors should start to take notice of what Planet 13 Holdings (NASDAQOTH: PLNHF) is up to.
Planet 13 Holdings is a vertically integrated dispensary operator like these popular U.S. cannabis stocks mentioned above, but its retail approach is completely unique. The company's off-strip SuperStore in Las Vegas, Nevada, is already the largest cannabis store in the country, and will grow even further by the time it's fully built out. Currently spanning 16,200 square feet, the Planet 13 SuperStore will eventually feature a coffee shop, pizzeria bistro, events center, and consumer-facing production facility with about a dozen windows for viewing, all of which should be complete by the third quarter of this year. When fully complete, Planet 13's flagship store will span 112,000 square feet. For added context, the average Walmart spans 105,000 square feet.
The Disneyland of cannabis stores is setting up shop near the happiest place on Earth Last week, Planet 13 Holdings announced that it would be acquiring a cannabis dispensary license and lease for a dispensary from Newtonian Principles in Santa Ana, California, for the sum of $6 million in cash and 2.04 million restricted shares of stock, valued at $4 million. This is all contingent upon Planet 13 receiving regulatory approvals from the state of California and city of Santa Ana.
According to the company's press release, it'll introduce a number of its in-house and top-branded cannabis products to the California market, but ensure that its new 40,000-square-foot location blends with the unique experiences of Californians (and the many tourists who visit the region).