StateHouse Issues Consideration for Increased Interest In Haight-Ashbury Dispensary

SAN DIEGO and TORONTO, Nov. 01, 2023 (GLOBE NEWSWIRE) -- StateHouse Holdings Inc. (“StateHouse” or the “Company”) (CSE: STHZ) (OTCQB: STHZF), a California-focused, vertically integrated cannabis company, today announced that the Company has completed the issuance of shares related to its acquisition of a further 29.9% interest in FGW Haight, Inc. ("FGW" or “Harborside San Francisco”), a cannabis dispensary in San Francisco's historic Haight-Ashbury district (the "FGW Acquisition"), as previously announced on February 15, 2022. The FGW Acquisition has increased the Company's interest in Harborside San Francisco to 80%.

Since its grand opening on May 21, 2022, Harborside San Francisco has participated in a variety of community engagement activities, including:

• Volunteering and assisting with the execution of the Haight-Ashbury Street Fair in 2023;
• Leveraging its retail licensing to support cannabis sales at Grass Lands at OSL 2023;
• Participating in the San Francisco community toy drive for the 2022 holidays;
• Aiding in medical consultations for patients from neighboring hospitals;
• Cross promotional activity with neighboring businesses;
• Sponsoring post 420 clean-up at Golden Gate Park, and much more.

“We are thrilled to consolidate our ownership in Harborside San Francisco and cement our position as the leading operator in Northern California,” said Ed Schmults, Chief Executive Officer of StateHouse. “The Haight-Ashbury district is an iconic area and an integral piece of San Francisco’s culture that is frequented by tourists and locals alike. Despite the challenging cannabis retail environment, Harborside San Francisco has continued to perform quite well, with sales in September up 33% and transactions up an astounding 59%, compared to September of last year.”

Mr. Schmults added, “Our social equity partner, Damien Posey and the team have done a fantastic job of creating an elevated, welcoming experience for cannabis consumers while integrating and actively engaging in the community. We look forward to continuing and expanding on this mission to ensure we leverage our position to support neighboring businesses, charities, and local residents.”

Mr. Posey added, “Harborside SF is quickly becoming a valued part of the Haight neighborhood and I'm excited to see it continue to grow and serve this important community.”

StateHouse acquired the additional interest in FGW through the execution of a securities purchase agreement (the "Agreement"), following the previously announced acquisition of 50.1% interest in FGW that closed on December 18, 2020. Pursuant to the Agreement, StateHouse has issued 1,170,584 common shares in the Company at a price of US $1.50 per share in consideration for the remaining ownership interest. The Company also retains the right of first refusal to purchase, in its discretion, in whole or in part and in one or more closings, the remaining 20% of FGW, subject to regulatory approvals.