Cannabis Company Planet 13 Endures Setbacks: Embezzlement Claims Precede Discounted Valuation
Planet 13 Holdings (OTC: PLNH), a multi-state cannabis operator, has lagged 55% behind its peers this quarter, affected by a poorly timed equity offering and alleged embezzlement issues, according to senior analyst Pablo Zuanic.
Despite these challenges, its stock trades at a 35% discount, with a valuation of 1.1x 2024 sales—lower than the industry average of 1.7x.
Zuanic signals strong prospects, especially with Florida’s looming market opportunities. Planet 13 stands out as a retail leader in Nevada with a scalable superstore model, poised for growth with potential Florida cannabis legalization.
Legal Tussle In The Cannabis Sector
Planet 13 Holdings has launched a $16.5 million lawsuit against Casa Verde Capital, co-founded by Snoop Dogg and El Capitan Advisors for alleged fraud. Filed in Los Angeles, the suit accuses both firms of deceitfully promoting their cannabis investment success to attract clients, including Planet 13, which entrusted them with $21 million,
reported Green Market Report.
Planet 13 contends El Capitan was a facade enabling Casa Verde to profit at its expense. While seeking damages and judicial oversight over El Capitan, Planet 13 aims to recover lost funds. Casa Verde denies any wrongdoing, stating its disappointment at being sued despite offering cooperation.
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