Planet 13 completes exit from California market

Executive Summary

• Planet 13 Holdings Inc. has substantially completed its exit from California by divesting retail and distribution licences and selling the cultivation property in Coalinga, with the cultivation licence transfer now underway.
• The exit aligns with the company’s 2025‑2026 strategic priority to reallocate capital toward higher‑return markets (Nevada and Florida), simplifying its operating footprint.
• Management expects the completed divestiture to reduce operating complexity, improve liquidity, and allow focus on expansion in core markets, representing a material positive development for shareholders.

Key Details

• Completed sale of Orange County retail and distribution licences previously disclosed.
• Closed sale of the Coalinga cultivation facility property; cultivation licence transfer to buyer is in progress.
• Exit from California was identified as a strategic priority for 2025‑2026; now substantially completed.
• California operations historically contributed a small, cash‑flow‑negative portion of consolidated revenue.
• Anticipated benefits include reduced operating overhead, streamlined management focus, and strengthened balance sheet/liquidity profile.
• CEO Bob Groesbeck emphasized disciplined execution and commitment to capital allocation rigor and shareholder accountability.

Notable Quotes

“This milestone reflects our disciplined execution against a clear strategic objective,” said Bob Groesbeck, co‑chief executive officer of Planet 13. “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.”