This Cannabis Retailer Prioritizes These Markets Over California, Here’s Why

Vertically-integrated multi-state cannabis company Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNH) is selling its non-core retail location in Orange County, California.

According to a Monday press release, Planet 13 is closing its cultivation facility in Coalinga, California, as well.

The company stated that its California operations accounted for only a small share of total revenue. Both operations were operating at a loss and no longer aligned with Planet 13’s long-term strategic goals.

The move is part of the company’s strategy to focus resources on its highest-performing markets, while positioning for long-term growth and profitability.

“This reflects our continued commitment to disciplined capital allocation and operational efficiency,” Bob Groesbeck, the company’s co-CEO, said. “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 it will continue to expand its presence in Nevada and Florida.

The sale of the Orange County retail license is subject to customary closing conditions and regulatory approvals. Planet 13 expects the transaction to be closed within roughly three to four months.

The Coalinga facility is expected to wrap up operations by the year’s end.