US (NV): Planet 13 announces settlement of a portion of funds related to El Capitan case

Planet 13 Holdings announced a settlement and recovery of US$2.1 million of funds which were held at BridgeBank, a division of Western Alliance Bank, bringing the total recovery of funds held at WAB to US$5.5 million.

Planet 13 will also obtain real estate valued at approximately US$5.0 million through a subsidiary, which it intends to sell.

What happened
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$35.0 million default judgment against El Capitan. Casa Verde then levied that judgment causing approximately US$5.5 million of the Company's funds held at WAB (the "WAB Funds") and managed by El Capitan to be directed to the Orange County, California Sheriff's Office on September 21, 2023. The Company secured a partial settlement with Casa Verde for the release of US$3.4 million of the WAB Funds, which the Company received on January 31, 2024.

In January 2024, the Company also initiated litigation in Santa Monica, California, to obtain the return of the approximately US$15.3 million in additional funds that were misappropriated by El Capitan and El Capitan's founder and Chief Executive Officer-Andrew Nash. The litigation also named Casa Verde, Casa Verde's Managing Member-Karan Wadhera, and Jamie Nash, the former spouse of Andrew Nash, as defendants. On February 16, 2024, the Court appointed a special-purpose receiver who has been tasked with investigating, tracing, and filing reports with the Court regarding the location and disposition of the funds stolen from Planet 13.

On February 28, 2025, the Company secured a settlement with Casa Verde for the remaining approximately US$2.1 million of the WAB Funds. The settlement is part of a broader resolution of ongoing litigation between the Company, Casa Verde, Mr. Wadhera, and Ms. Nash. As part of the settlement, the Company, through a wholly-owned subsidiary, will also obtain the Real Property formerly associated with Mr. and Mrs. Nash, which the Company intends to sell. The Real Property is valued at approximately US$5.0 million based on recent comparable sales.

The settlement will not end the Company's lawsuit against El Capitan and Andrew Nash seeking approximately US$10.3 million, which is based on the $15.3 million less the expected net proceeds Planet 13 receives from the sale of the Real Property, in compensatory damages and other relief. El Capitan and Andrew Nash have not appeared or otherwise responded to Planet 13's lawsuit, which has resulted in the entry of default against them and enables Planet 13 to pursue a default judgment.

This settlement does not conclude Planet 13's lawsuit against El Capitan Advisors, Inc. and its founder and Chief Executive Officer, Andrew Nash, in which it is seeking approximately US$10.3 million, which is based on $15.3 million less the expected net proceeds Planet 13 receives from the sale of the Real Property, in additional compensatory damages and other relief.