San Diego-based marijuana operator StateHouse Holdings has entered bankruptcy in Canada after its main lender asked that the company be placed in a receivership.
The move comes after Pelorus Fund REIT, a private mortgage real estate investment trust and StateHouse’s largest lender, asked a California court in September to place StateHouse in receivership after the vertically integrated cannabis operator defaulted on four loans.
According to a StateHouse news release, the decision to begin bankruptcy proceedings was made after careful consideration of:
- The financial condition of StateHouse and its subsidiaries.
- The company’s inability to pay its liabilities when they’re due.
- The receivership proceedings initiated by Pelorus and the monthslong negotiations between the company, its lenders and other secured creditors.
Pelorus said it is pleased with the progress made since it filed its receivership complaint.
“As we have stated since we initiated these proceedings, we recognize the significant value of StateHouse’s business, employees and operations and look forward to continuing to work with the company and the court-appointed receiver to ensure it is well positioned with a cleaner, more efficient and appropriate structure moving forward,” Pelorus said in a statement.
According to the StateHouse release, trading of its shares (STHZ) on the Canadian Securities Exchange has ceased, “and the Company anticipates that trading on the CSE will be suspended and that StateHouse will ultimately be delisted once the bankruptcy is initiated.”
StateHouse – formerly known as Harborside, a legacy California marijuana operator once based in Oakland – also trades on the over-the-counter markets (STHZF).