November 14, 2023 / Planet 13 Holdings Inc. (CSE:PLTH)(OTCQX:PLNH) (“Planet 13” or the “Company“), a leading vertically-integrated multi-state cannabis company, today announced that it has entered into a settlement agreement on November 14, 2023 (the “Settlement Agreement“) with certain individuals (collectively, the “SDC Parties“) with respect to certain claims (collectively, the “Legal Actions“) advanced by the SDC Parties against Next Green Wave Holdings, Inc. (“NGW“), a subsidiary of NGW and the Company (collectively, the “Planet 13 Parties“). As a result of the Company’s acquisition of NGW on March 2, 2022, the Company assumed all liabilities of NGW.
Pursuant to the Settlement Agreement, in consideration for the SDC Parties releasing the Planet 13 Parties from claims relating to the Legal Actions and to avoid the further expense of litigation, the Company agreed to pay the SDC Parties a cash payment of US$300,000 in the aggregate (the “Cash Payment“) and issue the SDC Parties an aggregate of 1,000,000 shares of common stock in the capital of the Company (the “Settlement Shares“). The Cash Payment will be made and the Settlement Shares will be issued on the date that is 14 days from the date of signing of the Settlement Agreement. Based on the closing price of the Company’s shares of common stock on the Canadian Securities Exchange of CAD$1.2000 and based on the Bank of Canada’s CAD to USD exchange rate of US$1.00=CAD$1.3725, in each case as of November 14, 2023, the total settlement amount is approximately US$1,174,316.94. The Settlement Shares will be subject to resale restrictions under applicable U.S. and Canadian securities laws.
The Settlement Agreement is not considered an admission of the correctness of the claims advanced by either party, or of liability or responsibility by either party. All other terms of the Settlement Agreement are confidential.
The Settlement Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
About Planet 13
Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations in Las Vegas and Orange County, California. Planet 13 also holds a medical marijuana treatment center license in Florida and a conditional Social-Equity Justice Involved dispensing license in the Chicago region of Illinois. Planet 13’s mission is to build a recognizable global brand known for world-class dispensary operations and create innovative cannabis products. Licensed cannabis activity is legal in these states but remains illegal under U.S. federal law. Planet 13’s shares of common stock trade on the Canadian Securities Exchange (CSE) under the symbol PLTH and are quoted on the OTCQX under the symbol PLNH.
