Planet 13 Holdings Inc (NASDAQ:PLTH) Q1 2020 Earnings Conference Call - Final Transcript
Jun 01, 2020 • 05:00 pm ET
industrial commercial area. It is close to the prominent tourist destinations, and most importantly, it is on a major thoroughfare and has ample parking. We are excited to be in Santa Ana, specifically. We had a number of city officials travel to Las Vegas to our SuperStore and they were very supportive of the concept. We believe very strongly that once we reach run rate in this location, it will be one of the highest grossing dispensaries in California, similar to what we have demonstrated in Nevada. By renegotiating the deal, we saved $5 million, almost enough to cover the $6 million budget we set aside to renovate the building and bring the dispensary area up to the Planet 13 level of excitement and quality. We've transferred the license and are well underway with the final plan and permitting. I'm not going to give a set opening date as we're all aware of how easily other factors outside of our control can impact the timing, especially now with COVID.
As we mentioned on our last call, we are also engaged with potential counter parties that could represent tuck-in acquisitions in Nevada, where we can increase the revenue or margin without the need for any large capital investments or corporate SG&A increases. We believe COVID has created some interesting opportunities in the state and we are evaluating them using our traditional Strip criteria.
While none of us would certainly want to go through COVID-19 again, it was the nearly perfect storm to stress our business model, and we are emerging stronger. Our team has done a great job of making proactive improvements to our operations that have introduced new customers and preserved our cash. As Las Vegas begins to open and business activities begin to normalize, we believe that we have become stronger, leaner and we'll continue to deliver outstanding long-term value to shareholders with incremental value added by additional local customers and a robust delivery offering.
With that said, I'd like to thank everyone for participating in today's call. And I'd now ask the operator to open the lines for questions. Thank you.