StateHouse revises series A loan with Pelorus Equity Group

Chicago, Aug. 1 – StateHouse Holdings Inc. revised its series A loan with Pelorus Equity Group as administrative agent and collateral agent, according to a press release.

The loan was originally signed Dec. 21, 2020.

The repayment date has been pushed back to Feb. 10, 2027.

An incremental term loan of $7,521,000 has been provided to bring the loan up to $15 million.

Interest will be at one-month SOFR plus 1,250 basis points, with a 4.5% SOFR floor.

As consideration for the loan, the lender has been granted 136,258,279 warrants. The warrants are exercisable for three years into common shares. Pelorus may not own more than 9.99% of the outstanding common shares of the company, though. There is also a put option on the warrants.

Proceeds will be used to repay series A debt, service the company’s other debts to Pelorus (including interest) and pay property taxes.

StateHouse, based in Oakland, Calif., is a vertically integrated enterprise with cannabis licenses covering retail, major brands, distribution, cultivation, nursery and manufacturing.

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