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Planet 13 Holdings Rises on Nevada Pot Lounge Vote

By Eric Volkman - Jun 3, 2021 at 6:03PM

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Dedicated cannabis consumption facilities are coming very soon to the permissive state.

Planet 13 Holdings (PLNH.F -2.37%), whose key asset is a glitzy "cannabis entertainment complex" in Las Vegas, stands to benefit handsomely from an upcoming state law. A bill that allows for the creation and operation of marijuana consumption lounges passed its final legislative hurdle with flying colors, overwhelmingly passing in the state senate by a 17 to 3 majority, with one abstention.

The bill must be passed to Governor Steve Sisolak for his signature; once signed, it will become law. Given its overwhelming support from lawmakers and Nevada's general permissiveness of the cannabis industry, it's almost a certainty that Sisolak will sign it.

Paper ballot under bowl of cannabis buds.

Image source: Getty Images.

The bill provides scope for two novel kinds of cannabis licenses. The first is for stand-alone lounges, and the second is for existing dispensaries that would like to set apart some space for consumption purposes. 

As such, it plays beautifully into the hands of Planet 13, which in tune with current retail sector trends aims to provide "experiences" for its customers -- as opposed to operating a simple store that functions only to provide merchandise.

The company's flagship Las Vegas outlet is currently undergoing an expansion project, after which shoppers will be able to eat, buy a designer coffee, and educate themselves about cannabis in addition to buying weed in the complex. 

Planet 13 hasn't yet officially commented on the lounge bill's passing, but it's almost certainly making plans for its own sit-and-smoke facilities. It'll undoubtedly create a splashy one or several to keep customers within its walls to spend their money.

On Thursday, Planet 13 stock rose by 1.6%, in sharp contrast to the nearly 0.4% decline of the S&P 500 index.

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Planet 13 Holdings Inc. The Motley Fool has a disclosure policy.

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