Form 4: Planet 13 Holdings Inc. General Counsel Receives 300,000 Restricted Stock Units

Tatev Oganyan, General Counsel of Planet 13 Holdings Inc., was granted 300,000 Restricted Stock Units (RSUs) on March 22, 2024, which vest in three equal installments over the next three years.

Summary

• On March 22, 2024, Tatev Oganyan, the General Counsel of Planet 13 Holdings Inc., received a grant of 300,000 Restricted Stock Units (RSUs).
• Each RSU represents the right to receive one share of Planet 13 Holdings Inc. common stock.
• The RSUs will vest in three equal tranches: 1/3 on March 20, 2025, 1/3 on March 20, 2026, and 1/3 on March 20, 2027.
• The exercise price will be determined on the day prior to each vesting date.
• Each tranche expires on March 15, 2026, March 15, 2027, and March 15, 2028, respectively, subject to continued service through each vesting date.

Sentiment

Score: 7

Explanation: The document indicates a standard compensation practice, suggesting stability and alignment of interests. The sentiment is neutral to slightly positive.

Positives

• The grant of RSUs aligns the General Counsel's interests with those of the shareholders, incentivizing her to contribute to the company's long-term success.
• The vesting schedule encourages continued service and commitment from the General Counsel over the next three years.

Risks

• The value of the RSUs is dependent on the future performance of Planet 13 Holdings Inc.'s common stock.
• If the General Counsel leaves the company before the vesting dates, she will forfeit the unvested RSUs.

Future Outlook

The RSUs are subject to continued service through each vesting date, suggesting an expectation of continued employment for the General Counsel.

Industry Context

Granting RSUs to key executives is a common practice in the industry to align their interests with those of the shareholders and incentivize long-term performance.

Comparison to Industry Standards

• RSU grants are a standard form of compensation for executives in publicly traded companies, particularly in growth-oriented sectors like the cannabis industry.
• The vesting schedule of 1/3 per year over three years is a typical vesting structure for RSU grants.
• Comparing the size of the grant to similar companies and executive roles would provide further context on the competitiveness of the compensation package.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it incentivizes the General Counsel to contribute to the company's long-term success.
• Employees may see the RSU grant as a sign of the company's commitment to its leadership team.

Key Dates