Planet 13 Substantially Completes Exit from California, Fully Streamlining Operations to Core Growth Markets

Executive Summary

• Planet 13 Holdings completed the divestiture of its Orange County, CA retail and distribution licenses and sold the property tied to its Coalinga cultivation facility.
• The company is now transferring the remaining cultivation license to the buyer, marking a substantial completion of its planned exit from California.
• Exit removes a cash‑flow negative segment, simplifies operations, and is expected to strengthen balance sheet liquidity while allowing focus on higher‑return markets (Nevada and Florida).

Key Details

• Divestiture Scope:
• Retail & distribution licenses in Orange County, CA – fully transferred to buyer.
• Sale of Coalinga cultivation property – closed; cultivation license transfer in progress.
• Strategic Rationale:
• Aligns with previously disclosed priority to exit California during 2025‑2026.
• Enables reallocation of capital and management focus to core markets (Nevada, Florida).
• Financial Impact:
• Removal of a cash‑flow negative operation that historically contributed a small share of consolidated revenue.
• Anticipated reduction in operating complexity and overhead; expected improvement to liquidity profile (specific dollar impact not disclosed).
• Operational Outlook:
• Management will concentrate resources on expansion and operational excellence in Nevada and Florida.
• No immediate changes announced for other U.S. markets (Illinois, etc.).
• Management Quote:

  “Exiting California was a deliberate priority for 2025–2026, and we have now successfully completed the closure of our retail and distribution operations while advancing the final steps related to cultivation.” – Bob Groesbeck, Co‑CEO

Notable Quotes

• “This milestone reflects our disciplined execution against a clear strategic objective,” said Bob Groesbeck, Co‑CEO.

Materiality Assessment: Material – Positive (the completion of the exit is expected to materially improve balance sheet strength and operational focus).