Pelorus Fund REIT Supports StateHouse Holdings' Initiation of Bankruptcy Proceedings in Canada

Rhea-AI Summary

Pelorus Fund REIT, a significant debt holder of StateHouse Holdings (CSE: STHZ) (OTCQB: STHZF), has expressed support for StateHouse's decision to initiate bankruptcy proceedings for its Canadian parent entity. This follows Pelorus' receivership complaint filed in September and a recent stipulation with majority holders of StateHouse's 9.0% secured notes for the appointment of a receiver.

The bankruptcy filing and receivership are aimed at protecting StateHouse's employees, customers, business partners, and vendors, while preserving its ongoing operations in California. Pelorus believes these actions will allow StateHouse to continue operating normally across its production and distribution footprint in the state.

Pelorus recognizes the significant value of StateHouse's business and intends to work with the company and the court-appointed receiver to ensure a cleaner, more efficient, and appropriate structure moving forward.

Positive

• Preservation of StateHouse's ongoing operations in California
• Protection of StateHouse's employees, customers, business partners, and vendors
• Potential for a cleaner and more efficient business structure

Negative

• StateHouse Holdings initiating bankruptcy proceedings for its Canadian parent entity
• Appointment of a receiver for StateHouse Holdings
• Financial distress indicated by the need for bankruptcy and receivership

NEWPORT BEACH, Calif., Oct. 11, 2024 /PRNewswire/ -- Pelorus Fund REIT, LLC., ("Pelorus") – a private mortgage real estate investment trust and significant owner of debt issued by StateHouse Holdings Inc. ("StateHouse" or the "Company") (CSE: STHZ) (OTCQB: STHZF), a California-focused, vertically integrated cannabis company, today issued the following statement supporting StateHouse's decision to commence Bankruptcy Proceedings for the Company's Canadian parent entity.   

"We are pleased at the progress made since we initially filed our Receivership complaint in September and to enter into a stipulation earlier this week with majority holders of the Company's 9.0% secured notes and the Company for the appointment of a receiver.  That action, combined with today's filing, protects StateHouse employees, customers, business partners and vendors and preserves the Company's ongoing operations in the state of California, enabling it to operate as normal across its production and distribution footprint in the state.  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."

About Pelorus Capital Group and Pelorus Fund REIT, LLC
Pelorus Capital Group offers a range of innovative transactional solutions addressing the diverse needs of real estate investors and portfolio managers. Our flexible acquisition and bridge lending programs are the direct result of our involvement in more than 4,700 transactions of varying size and complexity. Since 1991, our principals have participated in more than $1 billion of real estate investment transactions using both debt and equity solutions. We draw on our extensive experience to rapidly understand an opportunity, structure a logical solution and execute a timely close. For more information, please visit https://peloruscapitalgroup.com/.

Contact Information 
ASC Advisors
Taylor Ingraham / Elizabeth Amory
tingraham@ascadvisors.com / eamory@ascadvisors.com
203 992 1230

View original content:https://www.prnewswire.com/news-releases/pelorus-fund-reit-supports-statehouse-holdings-initiation-of-bankruptcy-proceedings-in-canada-302274023.html

SOURCE Pelorus Fund REIT, LLC.

FAQ

Why is StateHouse Holdings (STHZF) initiating bankruptcy proceedings?

StateHouse Holdings is initiating bankruptcy proceedings for its Canadian parent entity to protect its employees, customers, business partners, and vendors, while preserving its ongoing operations in California. This action aims to create a cleaner, more efficient, and appropriate structure for the company moving forward.

How will the bankruptcy proceedings affect StateHouse Holdings' (STHZF) operations in California?

According to Pelorus Fund REIT, the bankruptcy proceedings are expected to allow StateHouse Holdings to continue operating normally across its production and distribution footprint in California, preserving the company's ongoing operations in the state.

What is Pelorus Fund REIT's role in StateHouse Holdings' (STHZF) bankruptcy proceedings?

Pelorus Fund REIT is a significant debt holder of StateHouse Holdings and has supported the company's decision to initiate bankruptcy proceedings. Pelorus filed a receivership complaint in September and entered into a stipulation for the appointment of a receiver. They intend to work with the company and the court-appointed receiver to ensure a better structure for StateHouse moving forward.