Mr. Bob Groesbeck reports

PLANET 13 ANNOUNCES Q4 2022 FINANCIAL RESULTS

Planet 13 Holdings Inc. has released its financial results for the three-month and 12-month periods ended Dec. 31, 2022. Planet 13's financial statements are prepared in accordance with U.S. generally accepted accounting principles. All figures are reported in U.S. dollars unless otherwise indicated.

"Over the course of the year, we saw state-wide pricing trends and the overall economic environment impact our revenue. Despite this backdrop, we continued to meet our goal of 8 to 10 per cent of Nevada retail sales. For the full year, we had 9 per cent of the sales in Nevada. Towards the end of [fourth quarter], we saw those pricing compression trends start to stabilize, and we remain optimistic about the outlook for 2023," said Larry Scheffler, co-chief executive officer of Planet 13. "Despite the pressures on retail, we grew wholesale revenue by 26 per cent year over year and had a top-five brand in every product category. Moreover, in California, we increased our share of shelf and wholesale revenue every quarter."

"Across our organization, we are focused on three things: increasing profitability, preserving capital and setting ourselves up for future growth," commented Bob Groesbeck, co-CEO of Planet 13. "At the end of 2022, we are in a solid position. We have no debt, positive operating cash flow and over $50-million in cash. This is a strong foundation that alongside our numerous growth projects sets us up for future operating cash flow expansion."

Financial highlights -- Q4 2022

Operating results (all comparisons below are to the quarter ended Dec. 31, 2021, unless otherwise noted):

• Revenues were $24.8-million as compared with $29.9-million, a decrease of 16.8 per cent;
• Gross profit was $10.7-million or 43.0 per cent as compared with $16.2-million or 54.3 per cent;
• Operating expenses, excluding non-cash compensation expense, depreciation and amortization, and impairment loss, were $13.1-million as compared with $14.8-million, a decrease of 22.1 per cent;
• Net loss before taxes of $37.8-million driven by a $32.8-million impairment charge as compared with a net loss of $1.3-million;
• Net loss of $38.6-million as compared with a net loss of $5.1-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $800,000 as compared with adjusted EBITDA of $1.9-million.

Financial highlights -- full-year 2022

Operating results (all comparisons below are with the full year ended Dec. 31, 2021, unless otherwise noted):

• Revenues were $104.6-million as compared with $119.5-million, a decrease of 12.5 per cent;
• Gross profit was $48.0-million or 45.9 per cent as compared with $66.0-million or 55.2 per cent;
• Operating expenses, excluding non-cash compensation expense, depreciation and amortization, and impairment loss, were $48.2-million as compared with $52.9-million, a decrease of 9.0 per cent;
• Net loss before taxes of $40.2-million driven by a $32.8-million impairment charge as compared with a net loss of $6.0-million;
• Net loss of $49.0-million as compared with a net loss of $19.5-million;
• Adjusted EBITDA of $3.5-million as compared with adjusted EBITDA of $16.9-million.

Balance sheet (all comparisons below are with Dec. 31, 2021, unless otherwise noted):

• Cash of $52.4-million as compared with $61.6-million;
• Total assets of $233.6-million as compared with $216.8-million;
• Total liabilities of $42.7-million as compared with $43.1-million.

Q4 highlights and recent developments (or 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 12 months ended Dec. 31, 2022):

• In November, 2022, Planet 13 announced the location of its new Illinois dispensary.
• On Dec. 5, 2022, Planet 13 announced that it had received approval for a consumption lounge at its Las Vegas SuperStore.
• On Jan. 19, 2023, Planet 13 announced the location of its Port Orange dispensary in the Daytona Beach area of Florida.
• On Feb. 3, 2023, Planet 13 purchased land and a building for its planned Illinois dispensary.
• On Feb. 7, 2023, Planet 13 announced it had exercised the option to buy the remaining 51-per-cent interest in Planet 13 Illinois LLC.

Results of operations (summary)

The attached table sets forth consolidated statements of financial information for the three- and 12-month periods ended Dec. 31, 2022, and Dec. 31, 2021.

The company's annual report on Form 10-K for the year ended Dec. 31, 2022, is available on the Securities and Exchange Commission's website or the company's website. The company's management's discussion and analysis for the year 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 March 23, 2023, at 5 p.m. ET, to discuss its fourth quarter and full-year financial results and provide investors with key business highlights, its strategy and its outlook. The call will be chaired by Mr. Groesbeck and Mr. Scheffler, co-CEOs, and Dennis Logan, chief financial officer.

Conference call details

Date:  March 23, 2023

Time:  5 p.m. EST

Participant dial-in:  toll-free: 888-506-0062 or international: 973-528-0011

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

Reference No.:  836329

A webcast will be available.

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 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. Planet 13's shares trade on the Canadian Securities Exchange under the symbol PLTH and on the OTCQX under the symbol PLNHF.

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