In a significant move within California’s cannabis industry, Pelorus Fund REIT, LLC has filed a complaint in the Superior Court of California, requesting the appointment of a receiver to oversee StateHouse Holdings Inc. 

The move comes after StateHouse STHZF defaulted on four loans, prompting Pelorus, a major creditor, to seek court intervention. 

According to Dan Leimel Jr., CEO of Pelorus, the receivership aims to safeguard StateHouse’s operations, employees and assets while restructuring the company for enhanced efficiency and product delivery. “We recognize the inherent value in the Company’s operations, employees, and assets,” Leimel stated, underlining the intention to protect all stakeholders involved.

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StateHouse’s Mixed Financial Outlook

Despite the turmoil surrounding its financial stability, in August StateHouse Holdings reported a 10% year-over-year revenue increase for the second quarter of 2024. 

Revenue reached $27.8 million, compared to $25.3 million in Q2 2023, with net income climbing to $200,000 from a $2.1 million loss the previous year. CEO Ed Schmults attributed this growth to innovative product launches and effective cost-saving measures, resulting in a gross margin improvement of 50.8%.

However, the company’s financial health remains precarious, marked by a net working capital deficiency of approximately $156 million. As it navigates these challenges, the company continues to expand its product offerings, having launched 24 new products in the past year, which now account for 15% of its sales for 2024.

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