There’s going to be a lot of unravelling in this bankruptcy
One of California’s oldest cannabis companies has filed for bankruptcy in Canada after initiating receivership proceedings in its home country.
StateHouse Holdings Inc (OTCMKTS: STHZF) has halted trading on the Canadian Securities Exchange before an impending suspension and eventual delisting. The company has a California cultivation facility in Salinas, a manufacturing operation in Greenfield, 11 dispensaries and multiple brands.
The cannabis operator’s financial troubles became publicly known in September when one of its primary lenders filed a complaint in the San Diego Superior Court. Pelorus Fund REIT, LLC requested that StateHouse be placed in receivership due to a failure to meet its financial obligations. The Golden State marijuana operator has defaulted on four loans.
“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 news release.
StateHouse was previously known as Harborside Inc. before a rebranding in mid-2022. Harborside was awarded one of the state’s first medical pot licenses in 2006. StateHouse has now joined the ranks of failed California cannabis companies like MedMen and Eaze.
StateHouse enters bankruptcy proceedings in Canada, delisting imminent
