Nevada seemed like a sure bet before the pandemic for cannabis companies. A seemingly never-ending stream of tourists from states where cannabis isn’t legal or the legal product offerings were meager. Several companies made huge investments in the state, especially in Las Vegas, to capitalize on tourists happy to plunk down big bucks to sneak some products back home. Of course, it isn’t legal to take cannabis products across state lines, but that doesn’t stop many tourists from taking the risk. The pandemic, of course, caused that market to crash as tourism dried up and the operations were left to depend on the business of residents only. Now it looks like the cannabis comeback is underway.
Planet 13 Holdings Inc. (CSE: PLTH)(OTCQB: PLNHF) reported record sales in May of $11.2 million with gross margins above 50%. The company said that May represents the third consecutive month of record sales as Las Vegas and America return to normal. In a statement, Planet 13 said that hotels across the Las Vegas strip have reported having hotel rooms sold out for the foreseeable future and Planet 13 expects continued strong sales on the back of increased tourist traffic. In May, Planet 13 reported that its first-quarter revenue rose 41% to $23.8 over 2020 before the pandemic had really settled in and lockdowns began. So, there is a great deal of optimism about the second quarter.
“Tourism and business are looking up in Nevada and our operations are mirroring this trend by experiencing consistent, month-on-month growth. We are thrilled to share that the momentum gathered over the past few months is continuing, with yet another month of record sales in May. Planet 13 has built a successful retail cannabis brand that resonates with Americans. We remain confident about the continuation of this upward trend as Las