Planet 13 Insiders Are Selling Stock

Planet 13 (PLTH) is a company that I have followed closely for many years at 420 Investor. This week, I saw a lot of news about insider selling and looked into it. Indeed, there have been some sales recently:

This information is all available at the Securities Exchange Commission website, as the company files primarily with the SEC. The only seller that matters is Groesbeck, who owns a lot of shares even after these sales of almost 17% of his indirect holdings and a bit less of his overall exposure. At first blush, it's really bad to see a co-CEO selling so much at such a low price!

Who is Robert Groesbeck?

I have always liked the fact that the senior management team is real business people and not lawyers or investors. With that said, I have never been able to assess their performances prior to PLNH, which went public in Canada in 2018.

His bio in on the investor relations executive management page:

I have met him before (in Las Vegas at the super dispensary), but I have no idea how old he is. According to my search of the internet, he is 64 (born in January 1961). The other co-CEO, Larry Scheffler, has more of a business experience it seems. I believe that Scheffler is 75.

Insiders owned about 30% of the company according to the investor deck from May.

Is the Price Low?

PLNH is down 25.4% in 2025, which is pretty bad compared to other MSOs. The New Cannabis Ventures Global Cannabis Stock Index closed at 7.82 yesterday, which is up 13.7% year-to-date. PLNH is down a lot more over longer periods of time. Here is the chart of it compared to the ETF MSOS since the end of 2023:

PLNH is an MSO, though its main business for many years was exclusively in Nevada. They are big in Florida now, a state that has a medical cannabis market that worries me, and they have production and a store in California and a store in Illinois. MSOS actually controls 20.3 million shares, which represent 0.6% of the fund's holdings.

I think it's pretty easy to conclude that the price is low. More challenging is to assess the valuation. I think the stock is relatively cheap compared to other MSOs, mainly due to its stronger balance sheet than peers. If 280E goes away, it will be very good for the company. I am not counting on Florida moving from solely medical cannabis in 2026 to include adult-use as well, but this would be very helpful to Planet 13. PLNH has net cash, which is unlike peers. I trimmed it yesterday at a profit above $0.31, but my model portfolio at 420 Investor still holds a position that represents 4.9% of the portfolio. PLNH is not in the index I aim to beat.

Conclusion

I don't believe that the sales by Groesbeck should concern investors. He still owns a lot of shares, and co-CEO Scheffler owns a lot too. It would be nice to see some sort of statement by Groesbeck or the company, though.