05:42:56 EDT Wed 15 May 2024
Enter Symbol
or Name
USA
CA



Planet 13 Holdings Inc
Symbol PLTH
Shares Issued 223,317,270
Close 2024-01-23 C$ 1.07
Market Cap C$ 238,949,479
Recent Sedar Documents

Planet 13 enters partial settlement with Casa Verde

2024-01-23 16:52 ET - News Release

Mr. Robert Groesbeck reports

PLANET 13 PROVIDES FURTHER UPDATE REGARDING ACCESS TO CERTAIN CASH ACCOUNTS

Planet 13 Holdings Inc. has provided the following update.

As reported in a press release issued by the company on Nov.17, 2023, on June 20, 2021, the company engaged El Capitan Advisors Inc., an investment adviser registered with the Securities and Exchange Commission (the SEC), for cash management services. One of the company's accounts managed by El Capitan was held at BridgeBank, a division of Western Alliance Bank (collectively WAB). Pursuant to a dispute unrelated to the company, Casa Verde Capital LP and Casa Verde Capital EF LP (collectively Casa Verde) obtained a $35-million (U.S.) default judgment against El Capitan, which is a portfolio company of Casa Verde. Casa Verde then levied that judgment, 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.

The company has secured a partial settlement with Casa Verde for the release of $3.4-million (U.S.) of the WAB funds. On Jan. 16, 2024, the court entered an order directing the sheriff's office to release these funds to the company. The remaining approximately $2.1-million (U.S.) of the WAB funds are still in the possession of the sheriff's office while litigation is continuing. The company has not relinquished any right to the remaining levied funds and continues to pursue their return. A hearing on the ultimate disposition of the remaining levied funds is scheduled for April 29, 2024.

After filing the WAB claim in November, 2023, the company also took immediate action to withdraw the remaining approximately $16.5-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 and purported bank statements provided by El Capitan, the company has reason to believe that the additional funds were misappropriated by El Capitan.

On Jan. 22, 2024, the company initiated a lawsuit in Santa Monica, Calif., against El Capitan, El Capitan's founder and chief executive officer Andrew Nash, Casa Verde, Casa Verde's managing member Karan Wadhera, and Jamie Nash, the spouse of Mr. Nash (collectively defendants), seeking approximately $16.5-million (U.S.) in compensatory damages and other relief. The company alleges that each defendant is liable for their involvement in a scheme to defraud the company of funds managed by El Capitan in its capacity as the company's fiduciary. The company is vigorously pursuing its rights against defendants and intends to act quickly to enact all necessary remedies available.

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 will continue to vigorously pursue its rights to reclaim the funds that it entrusted to 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 is conducting an internal investigation with respect to the same. Given the nature of the claims and the actions taken by the defendants, the company may be limited in what information it can disclose following this announcement.

While this matter has resulted and will continue to result in some additional near-term expenses, the company does not expect this incident to have a material impact on its current business operations 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 across its locations in California, Nevada, Illinois and upcoming sites in Florida. Home to the nation's largest dispensary located just off the Strip in Las Vegas, Planet 13 recently opened its first Illinois dispensary in Waukegan, bringing unparalleled cannabis experiences to the Chicago metro area. Planet 13 holds a medical marijuana treatment centre licence in Florida allowing for state-wide expansion throughout the Sunshine State. Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and innovative cannabis products. Licensed cannabis activity is legal in the states Planet 13 operates in but remains illegal under U.S. federal law. Planet 13's shares trade on the Canadian Securities Exchange (CSE) under the symbol PLTH and are quoted on the OTCQX under the symbol PLNH.

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