StateHouse Holdings STHZF, a major player in the cannabis industry, has announced its entry into bankruptcy proceedings under Canada’s Bankruptcy and Insolvency Act. This development follows a series of financial challenges, culminating in legal action by Pelorus Fund, which filed a complaint in the San Diego Superior Court on September 25, 2024, seeking to place StateHouse and its subsidiaries into receivership.

On October 9, 2024, StateHouse and its lenders reached a stipulation appointing a receiver to maintain the company’s operations in California. This move is intended to preserve business continuity amid the financial turmoil.

StateHouse’s decision to initiate bankruptcy proceedings for its Canadian parent entity was driven by several factors, including its inability to meet financial obligations and the U.S. receivership proceedings initiated by Pelorus Fund REIT, LLC. Months of negotiations with lenders and secured creditors ultimately failed to provide a solution, leading to the company’s declaration of insolvency.

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As a result, trading of StateHouse shares on the Canadian Securities Exchange (CSE) has been halted. The company expects trading to remain suspended and anticipates being delisted following the bankruptcy filing.

Further updates regarding the company’s operations in California and the ongoing receivership proceedings in the U.S. are expected in the coming weeks as StateHouse navigates this challenging financial period.

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