Mr. Larry Scheffler reports

PLANET 13 ANNOUNCES Q3 2023 FINANCIAL RESULTS

Planet 13 Holdings Inc. today released its financial results for the three-month period ended Sept. 30, 2023. Planet 13's financial statements are prepared in accordance with United States generally accepted accounting principles (GAAP). All figures are reported in United States dollars ($) unless otherwise indicated.

• Q3 2023 revenue of $24.8-million;
• Q3 2023 net loss of $46.0-million, which included a non-cash impairment loss of $39.6-million;
• Q3 2023 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $200,000.

"I'm proud of our team's ability to compete and maintain market share in a very competitive market. Based on available data, our dispensaries were responsible for almost one in every ten dollars of cannabis bought in Nevada. Our brands continued to perform well, being among the top selling in their respective categories. We look forward to bringing our retail experience and brands to Illinois and Florida in the coming months," said Larry Scheffler, co-chief executive officer of Planet 13.

"This quarter, we took major steps towards executing the strategic goals we laid out at the start of the year and becoming a major player in Florida. We are also getting very close to opening our Illinois dispensary and completing the next phase of exciting new additions to the SuperStore. I'm very excited for 2024 when all our hard work starts to pay dividends," commented Bob Groesbeck, co-CEO of Planet 13.

Financial highlights -- Q3 2023

Operating results

All comparisons below are with the quarter ended Sept. 30, 2022, unless otherwise noted.

• Revenue was $24.8-million as compared with $25.6-million, a decrease of 3.3 per cent. The decline in revenue was driven by lower sales at the SuperStore and a slight decline in wholesale revenue in Nevada.
• Gross profit was $11.1-million or 44.7 per cent as compared with $10.6-million or 41.2 per cent. The improvement in gross margin was driven by a decrease in product discounting at retail.
• Total expenses were $55.1-million as compared with $15.0-million, an increase of 268.4 per cent. This included a one-time, non-cash $39.6-million impairment. Excluding impairment, total expenses were $15.4-million.
• Net loss of $46.0-million as compared with a net loss of $6.3-million. The increase in net loss was driven by the one-time $39.6-million impairment charge.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $200,000 as compared with adjusted EBITDA of $500,000. Adjusted EBITDA margin was lower due to operating leverage, partially offset by better gross margin.

Balance sheet

All comparisons are with Dec. 31, 2022, unless otherwise noted:

• Cash of $36.8-million as compared with $52.4-million;
• Total assets of $178.4-million as compared with $233.6-million;
• Total liabilities of $41.5-million as compared with $42.7-million.

Q3 highlights and recent developments

For a more comprehensive overview of these highlights and recent developments, please refer to Planet 13's management's discussion and analysis of the financial condition and results of operations for the three and nine months ended Sept. 30, 2023 (the MD&A).

• On Aug. 28, 2023, Planet 13 announced it had entered into a definitive agreement to acquire VidaCann.
• On Sept. 15, 2023, Planet 13 announced it had completed the change in domicile to Nevada and a change in its OTC trading symbol.
• On Nov. 1, 2023, Planet 13 announced plans for the Dazed! Consumption Lounge.

Results of operations (summary)

The attached tables set forth consolidated statements of financial information for the three-month periods ending Sept. 30, 2023, and Sept. 30, 2022.

The company's quarterly report on Form 10-Q for the quarter ended Sept. 30, 2023, is available on the SEC's (Securities and Exchange Commission) website or at the Planet 13 website. The company's management discussion and analysis for the period and the accompanying financial statements and notes are available under the company's profile on SEDAR+ and on its website.

This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Conference call

Planet 13 will host a conference call on Nov. 8, 2023, at 6 p.m. ET to discuss its third quarter financial results and provide investors with key business highlights, strategy and outlook. The call will be chaired by Larry Scheffler, co-CEO, and Dennis Logan, chief financial officer.

Conference call details

Date:  Nov. 8, 2023

Time:  6 p.m. ET

Participant dial-in:  toll-free 877-545-0523 or international 973-528-0016

Access code:   754919

Replay dial-in:  toll-free 877-481-4010 or international 919-882-2331 (available for two weeks)

Reference No.:  49385

About Planet 13 Holdings Inc.

Planet 13 is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations in Las Vegas and in Orange county, California. Planet 13 also holds a medical marijuana treatment centre licence in Florida and a conditional social equity justice involved dispensing licence in the Chicago region of Illinois. Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products. Licensed cannabis activity is legal in these states but remains illegal under U.S. federal law. Planet 13's shares trade on the Canadian Securities Exchange under the symbol PLTH and are quoted on the OTCQX under the symbol PLNH.

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