SAN DIEGO, Calif., and TORONTO – StateHouse Holdings Inc. (“StateHouse” or the “Company”) (CSE: STHZ) (OTCQX: STHZF), a California-focused, vertically integrated cannabis enterprise, today announced that Tom DiGiovanni, Chief Financial Officer, will step down from his role with the Company at year-end 2022 and Kavi Bhai, formerly Vice-President of Financial Planning and Analysis, has been appointed to the role of Chief Financial Officer effective of December 31st, 2022. In addition, Tiffany Liff has resigned from the Company’s Board of Directors, effective December 30, 2022 for reasons unrelated to StateHouse.
“StateHouse is fortunate to have already had a person of Kavi’s caliber on our team who has proved himself with his work ethic, intelligence, financial and industry knowledge and cultural fit. He has been working closely with Tom and we anticipate a smooth transition,” said Ed Schmults, Chief Executive Officer of StateHouse. “Tom provided strong financial leadership and guidance during an integral period when we combined four separate entities into our now unified company. We thank Tom for the important role he has played in the development of StateHouse into a leading producer, marketer and retailer of cannabis products in California and wish him well in his future endeavors,”
Mr. Schmults added, “On behalf of the Board and our entire leadership team, I would like to thank Tiffany for her efforts, advice, and professionalism during her time with the Board. We wish her the best in her future endeavors.”
“I am proud of my contributions during the creation of California’s top cannabis enterprise,” said Mr. DiGiovanni. “Additionally, I am particularly pleased that, through the launch of the largest solar microgrid project in the United States cannabis industry, StateHouse will further the use of renewable energy to grow cannabis. I am confident that the strong StateHouse team will continue to build on the great foundation we have established, and that StateHouse will emerge as a leading developer of the California cannabis market.”
Financing Update
As previously announced, the Company continues to engage in discussions with Pelorus Equity Group (“Pelorus”) related to potential future financing options. As of December 21, 2022 the Series A debtholders have granted StateHouse a one month extension on repayment of the Company’s outstanding debt obligations in respect of its Series A Indebtedness.
Option and RSU Grant
The Company granted a total of 800,000 options to purchase common shares of StateHouse to certain directors, officers and employees pursuant to the Company’s Stock Option Plan. The options vest in equal annual installments over a period of four years from the date of grant and expire 5 years from the date of grant. In addition, the Company has issued a total of 400,000 restricted share units (“RSUs”) to certain directors, officers and employees of the Company in accordance with the Company’s Restricted Share Unit Plan. The RSUs will vest in equal annual installments over a period of four years from the date of grant. Once vested, each RSU represents the right to receive one common share of the Company or the equivalent cash value thereof, at the Company’s discretion.
About StateHouse:
StateHouse, a vertically integrated enterprise with cannabis licenses covering retail, major brands, distribution, cultivation, nursery and manufacturing, is one of the oldest and most respected cannabis companies in California. Founded in 2006, its predecessor company Harborside was awarded one of the first six medical cannabis licenses granted in the United States. Today, the Company operates 13 dispensaries covering Northern and Southern California and one in Oregon, distribution facilities in San Jose and Los Angeles, California and integrated cultivation/production facilities in Salinas and Greenfield, California. StateHouse is a publicly listed company, currently trading on the Canadian Securities Exchange (“CSE”) under the ticker symbol “STHZ” and the OTCQX under the ticker symbol “STHZF”. The Company continues to play an instrumental role in making cannabis safe and accessible to a broad and diverse community of California and Oregon consumers.
