Planet 13 Holdings, a vertically integrated multi-state cannabis company, today announced the divestiture of its Orange County, California retail store and the closure of its cultivation facility in Coalinga, California.
The company said the moves align with its strategy to focus resources on its highest-performing markets and to position the company for long-term growth and profitability. Planet 13 will continue to invest in expanding its presence in Nevada and Florida.
“This reflects our continued commitment to disciplined capital allocation and operational efficiency.” said Planet 13 Co-CEO Bob Groesbeck in a statement. “By concentrating our efforts on our strongest markets, we’re building a more focused, efficient, and resilient company that’s well-positioned for future expansion.”
The company said its California operations represented a small portion of the its overall revenue and were cash-flow negative. Proceeds from the transaction, while not material, will help further strengthen the company’s balance sheet.
The sale of the Orange County retail license is subject to customary closing conditions and regulatory approvals. The company expects the transaction to close within approximately three to four months. The Coalinga facility is expected to wind down operations by the end of 2025.
