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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index lost 1.02 points to 156.74 Tuesday, while the Canadian Securities Exchange Composite Index lost 3.1 points to 374.11. Las Vegas retailer Planet 13 Holdings Inc. (PLTH) remained unchanged at $1.70 on 563,800 shares after releasing its results for the first quarter of 2020. Planet 13 lost $1.3-million (U.S.) on revenue of $16.7-million (U.S.) in Q1 2020, compared with a loss of $2.6-million (U.S.) on revenue of 16.5-million (U.S.) in Q4 2019. Although Planet 13 lost money in Q1, it had positive cash flow from operations of $2.4-million (U.S.). (With profits in the industry relatively scarce, number crunchers are left to look elsewhere for encouragement.)
Planet 13's decision to only operate one dispensary has left the company in a better financial position than many cannabis producers. As of March 31, the company had cash of $13.9-million (U.S.) and working capital of $10.2-million (U.S.). That would be on the low side for many cannabis producers, but for one that is cash flow positive, it appears to be just fine. Still, the bigger test will be how well Planet 13 holds up in the more COVID-19-affected second quarter.
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