StateHouse Revises Debt Obligations

Capital Infusion Provides Financial Flexibility as the Company Executes its Long-Term Profitability Plan

Series A Term Loan Maturity Date is Extended to February 10, 2027

SAN DIEGO and TORONTO, Aug. 01, 2023 (GLOBE NEWSWIRE) -- StateHouse Holdings Inc. ("StateHouse" or the "Company") (CSE: STHZ) (OTCQX: STHZF), a California-focused, vertically integrated cannabis enterprise, today announced that it has entered into an agreement with Pelorus Equity Group (“Pelorus”) as Administrative Agent and Collateral Agent to the Credit and Guaranty Agreement, dated as of December 21, 2020, as amended (the “Series A Loan Agreement”), to extend the repayment date of the Series A Loan Agreement to February 10, 2027 and increase the amount of the Series A Loan (the “Debt Modification Agreement”). Pursuant to the terms of the Debt Modification Agreement, Pelorus is providing an incremental term loan of $7.521 million, to bring the total principal amount of the Series A Loan Agreement to $15.0 million. The Company will use the funds for repayment of the Series A indebtedness, servicing the Company’s other debts to Pelorus, including any interest owing thereon, and payment of property taxes.

“We are very pleased to have secured the modification of our existing debt obligations, as well as additional funding to strengthen our financial position as we execute our growth strategy,” said Ed Schmults, Chief Executive Officer of StateHouse. “We have achieved significant progress in 2023 and we are grateful for the valued partnership we have developed with Pelorus. The confidence they have placed in us with this modification has been instrumental in providing us with the financial flexibility to manage and improve our balance sheet to execute on our long-term growth plan to position ourselves at the forefront of the California cannabis landscape and achieve future profitability.”

Mr. Schmults added, “Throughout the remainder of the year and into 2024, we are focused on three main areas of our business: cultivation, branded sales and manufacturing, and retail. Since the beginning of our integration, we have seen consistent improvements in our cultivation and recent harvests have been strong, which we expect to continue. We continue to introduce new customers to our sales platform, and the branded sale operations have been performing well in line with our expectations, and we anticipate bringing on additional new brands in the coming months. Our innovation and drive to deliver quality products at reasonable prices is resonating with consumers and we have seen incredibly positive responses to recent product launches as well as our TOPS loyalty program.”