This also explains why Planet 13 just had to go back to the markets to raise more cash.
Things are not looking good if the tone of this report is to be believed.
CRB Monitor reports
The non-payment of a secured $35 million credit agreement between rap artist Snoop Dog’s cannabis venture capital firm, Casa Verde Capital, and a Santa Barbara-based cash management firm for cannabis companies known as El Capitan Advisors, has led to litigation in California state court that alleges the firm engaged in a sophisticated money laundering scheme using its cannabis business clients’ cash deposits.
The litigation, which indirectly involves at least five well-known cannabis dispensary operators, including two publicly-traded companies, has caught the attention of state and federal regulators, according to two people involved in the situation. One of the agencies includes the Nevada Cannabis Compliance Board, which can refer activity to the U.S. Department of Justice and the Securities and Exchange Commission. Sources at the regulator indicate the SEC has opened a preliminary inquiry into the El Capitan seizure.
The events surrounding the sudden late 2023 collapse of the money manager has caused at least one of the companies, Planet 13 (PLNH), a Canadian Stock Exchange-listed operator of dispensary “superstores” in California, Nevada and Illinois, to withdraw its accounting statements for the past three years in the face of losses that could top $16 million.
According to court documents other El Capitan clients include: Curaleaf Florida (CURLF), Kind Farms Corp, Gro Capital, BlueOx, Pinnacle, Craft 1861 Global, Bluefin Group, Texas Originals, US Eagle, Seven Point Supply, and Key Investment Partners.
Read their full report
Cannabis ‘cash management’ firm accused of stealing millions, flouting money laundering rules
