A recent equity research report underlines the potential of Planet 13 Holdings in Florida after its acquisition of VidaCann.
The report discusses Planet 13’s strategic growth plan in Florida, particularly in light of potential recreational cannabis legalization by mid-2026.
Florida Market Expansion
The acquisition of VidaCann, completed for $63.4 million, empowers Planet 13 to expand in Florida with plans for six new stores by end of 2024.
The rebranding of VidaCann stores as Planet 13 outlets, along with new product offerings like HaHa edibles, are key to this expansion drive.
Operational Metrics And Growth Projections
In Q2 2024, VidaCann stores sold on average 1.86K ounces of flowers per store, up by 120% year-over-year, albeit still below the state average.
Similarly, extract volumes per store rose by over 30% annually, although still lagging behind the state average.
Forecasts suggest that the 32 Florida stores could generate over $70 million annually by year-end if performance gaps are addressed.
Financial Outlook And Market Valuation
Florida is poised to be a significant growth driver for Planet 13, with gross margins around 50% and room for improvement through operational efficiencies.
If Florida legalizes recreational sales by mid-2026, Planet 13 may achieve a $225 million annual sales run rate by the year-end, potentially doubling the current share price.
Projections indicate a $450 million enterprise value based on an EBITDA margin of 20% and a 10x EBITDA multiple, translating to a share price of $1.30.
