StateHouse and Pelorus Capital Group Enter into Strategic Arrangement to Operate Humboldt County Cultivation Facility

StateHouse to Provide Project Management, Operational Oversight and Strategic Direction at Humboldt County Cultivation Facility

SAN DIEGO and TORONTO, Aug. 22, 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 a Managed Service Agreement ( the “Agreement”) with Pelorus Capital Group (“Pelorus”) to manage the operations at Willow Creek located in Humboldt County, (collectively, the “Humboldt Facilities”) for a monthly, fixed fee for an initial 18-month term.

In addition to its cultivation and operational expertise, StateHouse will provide Pelorus with its full range of services including human resources, legal and compliance, post-harvest production and processing, contract manufacturing, distribution and safety management.  The Humboldt Facilities include a 150,000 square foot greenhouse production facility with an additional acre of field production, in addition to nursery licenses that are split between two facilities, including a 1,500 square foot tissue culture laboratory.

“We are off to an impressive start to 2023 and with numerous corporate milestones already completed, we have secured our position as a leading operator in the State,” said Ed Schmults, Chief Executive Officer of StateHouse. “This new arrangement with Pelorus has opened the potential to expand our managed services to be an all-margin business line, which will further improve our bottom line and leverage our proven cultivation and operations experience. By highlighting our expertise in Humboldt, we believe this can unlock significant opportunity to provide managed services to other owners in the state and across the country. This new services initiative has the potential to quickly develop into a strong cash-generating division for StateHouse.”

Mr. Schmults added, “We are thrilled to further deepen our trusted partnership with Pelorus. As experts in California, we have many long-standing relationships across the industry and believe we are extremely well-positioned to provide genetics, cultivation prowess, management oversight and strategic thinking necessary to revitalize operations at the Humboldt Facilities.”

“StateHouse has a long history as a trusted operator and we look forward to leveraging the full breadth of their experience and talented team to bring the Humboldt Facilities to their full potential,” said Travis Goad, Pelorus Capital Group. “Bringing in such a seasoned operator whose extensive expertise in the cultivation of cannabis is critical to success in the dynamic California market.”