Mr. Robert Groesbeck reports

PLANET 13 PROVIDES UPDATE REGARDING ACCESS TO CERTAIN CASH ACCOUNTS

Planet 13 Holdings Inc. has provided an update.

On June 20, 2021, the company engaged El Capitan Advisors Inc., an investment adviser registered with the United States Securities and Exchange Commission, for cash management services. One of the company's accounts managed by El Capitan was held at BridgeBank, a division of Western Alliance Bank (WAB). Pursuant to a dispute unrelated to the company, Casa Verde Capital LP and Casa Verde Capital EF LP obtained a $35-million (U.S.) default judgment against El Capitan. Casa Verde then levied that judgment against El Capitan, causing approximately $5.5-million (U.S.) of the company's funds held at WAB and managed by El Capitan to be directed to the Orange County Sheriff's Office on Sept. 21, 2023.

On or around Oct. 24, 2023, the company became aware of the levy against the WAB funds and thereafter filed a third party claim of exemption asserting rightful ownership over the WAB funds. On Nov. 17, 2023, the company will be filing a pleading in further support of the WAB claim, and a hearing regarding the WAB claim is currently scheduled for Nov. 30, 2023.

After filing the WAB claim, the company took immediate action to withdraw the remaining $16-million (U.S.) that the company held in two additional company accounts managed by El Capitan. The company was initially informed by El Capitan that the additional funds were being wired to the company in due course. However, on Nov. 14, 2023, El Capitan informed the company that due to issues in connection with the Casa Verde judgment the wire was not able to be processed. Since Nov. 14, 2023, El Capitan has refused to honour the company's further withdrawal requests with respect to the additional funds, and at this time it is unclear whether the additional funds will be returned. Based on discussions with El Capitan to secure the withdrawal of the additional funds, the company has reason to believe that the additional funds may have been misappropriated by El Capitan.

At this time, the company is not able to predict what, if any, action may be taken by law enforcement or other regulatory authorities. The company is vigorously pursuing its rights to reclaim all funds managed by El Capitan and will pursue recovery of its funds through all legally available means, including, as appropriate, through co-operation with law enforcement.

The company has engaged legal counsel regarding these matters and has commenced its own internal investigation with respect to the same, but the company has not yet determined whether an independent internal investigation will be required. Given the nature of the claims and the actions taken by El Capitan, the company may be limited in what information it can disclose following this announcement to the extent limited by any investigations, internal or otherwise.

While this matter will result in some additional near-term expenses, the company does not expect this incident to have a material impact on its business or its ability to finance the anticipated working capital and other liquidity requirements of its near-term continuing operations.

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 conditional social-equity-justice-involved 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 creating innovative cannabis products. Licensed cannabis activity is legal in these states but remains illegal under United States federal law.

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