Mr. Robert Groesbeck reports

PLANET 13 ANNOUNCES SIGNIFICANT RECOVERY OF FUNDS RELATED TO EL CAPITAN

Planet 13 Holdings Inc. has settled and recovered $2.1-million (U.S.) of funds that were held at BridgeBank, a division of Western Alliance Bank (collectively, WAB), bringing the total recovery of funds held at WAB to $5.5-million (U.S.). Additionally, the company, through a wholly owned subsidiary, will also obtain real estate valued at approximately $5-million (U.S.) based on recent comparable sales, which it intends to sell. In total, the company has recovered approximately $10.5-million (U.S.), including the expected value from the sale of the real property.

This settlement does not conclude the company's lawsuit against El Capitan Advisors Inc. and its founder and chief executive officer, Andrew Nash, in which it is seeking approximately $10.3-million (U.S.), which is based on $15.3-million (U.S.) less the expected net proceeds Planet 13 receives from the sale of the real property, in additional compensatory damages and other relief.

Planet 13 also provides the following comprehensive update.

As previously disclosed, the company engaged El Capitan, an investment adviser registered with the U.S. 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 LP and Casa Verde Capital EF LP obtained a $35-million (U.S.) default judgment against El Capitan. 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 in California on Sept. 21, 2023. The company secured a partial settlement with Casa Verde for the release of $3.4-million (U.S.) of the WAB funds, which the company received on Jan. 31, 2024.

In January, 2024, the company also initiated litigation in Santa Monica, Calif., to obtain the return of the approximately $15.3-million (U.S.) in additional funds that were misappropriated by El Capitan and El Capitan's founder and chief executive officer, Mr. Nash. The litigation also named Casa Verde, Casa Verde managing member, Karan Wadhera and Jamie Nash, the former spouse of Mr. Nash, as defendants. On Feb. 16, 2024, the court appointed a special-purpose receiver, which 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 Feb. 28, 2025, the company secured a settlement with Casa Verde for the remaining approximately $2.1-million (U.S.) of the WAB funds. The settlement is part of a broader resolution of continuing 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. Nash and Ms. Nash, which the company intends to sell. The real property is valued at approximately $5-million (U.S.) based on recent comparable sales.

The settlement will not end the company's lawsuit against El Capitan and Mr. Nash seeking approximately $10.3-million (U.S.), which is based on the $15.3-million (U.S.) less the expected net proceeds Planet 13 receives from the sale of the real property, in compensatory damages and other relief. El Capitan and Mr. 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.

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 Mr. 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 co-operation 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 continuing 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 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 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, and 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 under the symbol PLTH and are quoted on the OTCQX exchange under the symbol PLNH.

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