Planet 13 Announces Significant Recovery of Funds Related to El Capitan
Rhea-AI Summary
Planet 13 Holdings (OTCQX:PLNH) has announced a significant recovery of funds related to the El Capitan case. The company has secured a settlement of US$2.1 million from BridgeBank/Western Alliance Bank (WAB), bringing the total WAB fund recovery to US$5.5 million.
Additionally, through a subsidiary, Planet 13 will acquire real estate valued at approximately US$5.0 million, which it plans to sell. The total recovery amounts to US$10.5 million. The company continues its lawsuit against El Capitan Advisors and its CEO Andrew Nash, seeking approximately US$10.3 million in additional compensatory damages.
The case stems from El Capitan's misappropriation of Planet 13's funds while providing cash management services. A special-purpose receiver has been appointed to investigate and trace the stolen funds. El Capitan and Nash have not responded to the lawsuit, resulting in a default entry against them.
Positive
- Recovered US$10.5 million in total assets
- Secured US$2.1 million settlement from WAB
- Acquiring real estate worth US$5.0 million
- Default judgment obtained against El Capitan and Nash
Negative
- US$10.3 million still pending recovery
- Uncertainty about additional fund recovery from El Capitan/Nash
- Legal proceedings ongoing with associated costs
News Market Reaction – PLNH
In the trading session that priced this news, PLNH declined 0.34%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
LAS VEGAS, March 03, 2025 (GLOBE NEWSWIRE) -- Planet 13 Holdings Inc. (CSE:PLTH)(OTCQX:PLNH) ("Planet 13" or the "Company"), a leading vertically-integrated multi-state cannabis company, today announced a settlement and recovery of US
This settlement does not conclude the Company’s lawsuit against El Capitan Advisors, Inc. ("El Capitan") and its founder and Chief Executive Officer, Andrew Nash, in which it is seeking approximately US
Planet 13 also provides the following comprehensive update.
As previously disclosed, the Company engaged El Capitan, an investment advisor registered with the Securities and Exchange Commission, for cash management services in 2021. The funds managed by El Capitan were held at WAB. Pursuant to a dispute unrelated to the Company, Casa Verde Capital, L.P. and Casa Verde Capital EF, L.P. (collectively "Casa Verde") obtained a US
In January 2024, the Company also initiated litigation in Santa Monica, California, to obtain the return of the approximately US
On February 28, 2025, the Company secured a settlement with Casa Verde for the remaining approximately US
The settlement will not end the Company’s lawsuit against El Capitan and Andrew Nash seeking approximately US
At this time, the Company is not able to predict what, if any, action may be taken by law enforcement or other regulatory authorities or what, if any, proceeds will be available to recover from El Capitan and/or Andrew Nash. The Company will continue to vigorously pursue its rights to reclaim the funds that it entrusted to El Capitan and will continue to pursue recovery of its funds and additional compensation through all legally available means, including as appropriate, through cooperation with law enforcement and/or initiation of further litigation.
The Company engaged legal counsel to conduct an internal investigation with respect to these matters, which has been completed, but as set forth above, the Company continues to pursue additional information regarding the location of the Company’s assets and/or available means of recovery. Given the ongoing 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.
About Planet 13
Planet 13 (https://planet13.com) is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations across its locations in California, Nevada, Illinois, and Florida. Home to the nation's largest dispensary, located just off The Strip in Las Vegas, Planet 13 continues to expand its footprint with the recent debut of its first consumption lounge in Las Vegas, DAZED!, the opening of its first Illinois dispensary in Waukegan, bringing unparalleled cannabis experiences to the Chicago metro area. Planet 13 operates 30 dispensaries across Florida, a key market in its expansive footprint, bringing its total to 34 locations nationwide. 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. To learn more, visit planet13.com and follow Planet 13 on X @ShopPlanet13 and on Instagram @planet13official_.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements and are often, but not always, identified by phrases such "plans", "expects", "proposed", "may", "could", "would", "intends", "anticipates", or "believes", or variations of such words and phrases. In this news release, forward-looking statements relate to the settlement, the value of Real Property, ongoing legal action and potential outcomes and statements regarding the Company pursuing recovery of its funds through all available legal means. Such forward-looking statements reflect what management of the Company believes, or believed at the time, to be reasonable assumptions and accordingly readers are cautioned not to place undue reliance upon such forward-looking statements and that actual results may vary from such forward-looking statements. These assumptions, risks and uncertainties which may cause actual results to differ include, among others, those assumptions, risks and uncertainties discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and any of the Company's subsequent periodic reports filed with the U.S. Securities and Exchange Commission at www.sec.gov and on SEDAR+ at www.sedarplus.ca. Forward-looking statements contained herein are made only as to the date of this press release and we assume no obligation to update or revise any forward-looking statements should they change, except as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
For further inquiries, please contact:
Planet 13 Investors:
Robert Groesbeck or Larry Scheffler
Co-Chief Executive Officers
ir@planet13lasvegas.com
LodeRock Advisors Inc., Planet 13 Investor Relations
mark.kuindersma@loderockadvisors.com
725-331-7650 ext. 105210
Planet 13 Media:
Colin Trethewey / PRmediaNow Communications
Colin@PRmediaNow.com
