Pelorus Fund REIT is asking a California court to place StateHouse Holdings into receivership after the vertically integrated cannabis operator defaulted on four loans.
Pelorus, a private mortgage real estate investment trust (REIT) and the largest lender to StateHouse, expects that the San Diego-based company’s management will support the appointment of a receiver.
Pelorus CEO Dan Leimel Jr. said there is value in StateHouse’s operations, employees and assets and the request for receivership is intended to protect its employees, customers, business partners and vendors.
“We believe that a court-appointed receivership will better position StateHouse to more effectively produce and deliver high-quality product for the benefit of its key constituents,” Leimel said.
StateHouse representatives did not return MJBizDaily calls and emails seeking comment.
Pelorus is asking the court to move quickly to appoint a receiver “so that StateHouse can be directed towards a cleaner, more efficient and appropriate structure moving forward.”
Despite its precarious financial position, StateHouse reported that its revenue increased 10% year-over-year in the second quarter, reaching $27.8 million.
Net income rose to $200,000 from a $2.1 million loss the previous year.
“Our focus on both reducing our operating expenses while enhancing the product mix available is working, and I am incredibly pleased with our operational performance throughout the year,” StateHouse CEO Ed Schmults said when the company announced its financial results on Aug. 29.
The company rebranded from Harborside – a legacy California marijuana operator once based in Oakland – to StateHouse in 2022 after its acquisition the previous year of Urbn Leaf, a San Diego-headquartered retailer, and Loudpack, a cultivator, processor and distributor in Los Angeles.
StateHouse trades as STHZ on the Canadian Securities Exchange and STHZF on the over-the-counter markets.
