StateHouse Goes Into Receivership With $100 mm In Debt

LOS ANGELES- Pelorus Fund REIT has filed a request with a California court to place StateHouse Holdings, a vertically integrated cannabis operator, into receivership following the company’s default on four loans. Pelorus, a private mortgage real estate investment trust (REIT) and the largest lender to StateHouse, expects the company’s management to support the move.

Pelorus CEO Dan Leimel Jr. emphasized that StateHouse’s operations, employees, and assets retain value, and the request for receivership is intended to protect the interests of the company’s key stakeholders, including employees, customers, and business partners. “We believe that a court-appointed receivership will better position StateHouse to more effectively produce and deliver high-quality products for the benefit of its key constituents,” Leimel stated.

As of this time, representatives from StateHouse have not responded to calls or emails seeking comment.

Pelorus is pushing for swift action from the court to appoint a receiver, with the goal of restructuring StateHouse for greater efficiency and stability. Despite its financial challenges, StateHouse reported a 10% year-over-year revenue increase in the second quarter, reaching $27.8 million. The company also shifted from a net loss of $2.1 million in the previous year to a net income of $200,000.

StateHouse CEO Ed Schmults expressed optimism about the company’s recent performance. “Our focus on both reducing operating expenses while enhancing the product mix is working, and I am incredibly pleased with our operational performance throughout the year,” Schmults said in an August 29 announcement of the company’s financial results.

Formerly known as Harborside, a legacy California cannabis operator, StateHouse rebranded in 2022 following its acquisition of Urbn Leaf, a San Diego-based retailer, and Loudpack, a cultivator and distributor in Los Angeles. StateHouse trades under the ticker symbols STHZ on the Canadian Securities Exchange and STHZF on over-the-counter markets.