Provider of Value-Add Bridge Commercial Real Estate Loans for

Cannabis Businesses and Owners Expected to Provide Non-Dilutive Capital, Leveraging StateHouse’s Significant Real Estate Portfolio

Newport Beach, CA (November 30, 2021) — Pelorus Equity Group (“Pelorus” or “Company”), the main supplier of value-add bridge industrial actual property loans for hashish companies and house owners with cannabis-related actual property, introduced its Pelorus Fund (the “Company”), a privately held mortgage actual property funding belief (“mREIT”) with hashish use and cannabis-related properties, has entered into a letter of intent (“LOI”) to finish StateHouse Holdings’ actual property financing (as outlined under) of US$77.3M of non-dilutive actual property debt financing, which is predicted to unlock worth from the StateHouse real estate portfolio, in addition to present vital progress capital for the enterprise [see “Concurrent Financing” below for further details].
The LOI comes on the heels of Harborside Inc. (“Harborside”), a California-focused, vertically built-in hashish enterprise, coming into into definitive agreements (the “Definitive Agreements”) to accumulate UL Holdings Inc. (“Urbn Leaf“),  a top California cannabis retailer with a dominant position in Southern California (the “Urbn Leaf Transaction”), and  LPF JV Corporation (“Loudpack“), a leading manufacturer, cultivator and distributor of award-winning cannabis brands in California (the “Loudpack Transaction” and, collectively with the Urbn Leaf Transaction, collectively, the “Transactions”). Following completion of the Transactions, Harborside is predicted to be renamed StateHouse Holdings  (“StateHouse”), topic to shareholder and regulatory approval.
“We’re excited to fund such a compelling transaction and excited for this to be the largest loan Pelorus has funded to date, held 100% on our balance sheet,” stated Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund. “As we continue to scale our assets under management, we’re now able to provide lending solutions to the largest cannabis companies in the country.  With our flexible capital, we’re able to structure capital markets solutions for any complex transaction and sponsors can have absolute confidence in our ability to perform.  We’re confident Pelorus is both a price and deal structure leader in the cannabis real estate market and look forward to working with other large operators in the space.”
“We’re excited to be able to fund such a significant rollup in the California market,” stated Travis Goad, managing partner of Pelorus Equity Group. “We think the combined companies will be a formidable player on a go-forward basis. This loan is one of our first in our new lower cost stabilized lending program.  We expect this stabilized lending program will continue to be the best-in-class financing option for cannabis operators with cash flowing assets, especially for complex transactions such as this. Pelorus is constantly innovating, finding new financing solutions for the cannabis real estate market, and we look forward to helping more cannabis owners and operators as we expand the power and reach of our growing portfolio.”

Concurrent Financing: Rollup Financing

In connection with the Transactions, the Company has signed a non-binding time period sheet with Pelorus Equity Group for a complete of US$77.3M of debt financing (the “Rollup Financing”), which might be used primarily to retire sure present loans and present further working capital to the Company, Urbn Leaf and Loudpack.  The Rollup Financing would include a nominal rate of interest of 10.25%, alongside with specified origination, closing and different transaction charges, and could be secured by sure actual property property and hashish licenses of the Company, Urbn Leaf and Loudpack. It would even be topic to debt service ratio necessities, curiosity reserves, sure cross-corporate ensures and defaults, subordination agreements and intercreditor agreements, alongside with a common company warranty from the Company. The Rollup Financing is meant to be funded in two tranches, with the first occurring previous to closing on the acquisitions of Urbn Leaf and Loudpack, and the second tranche to be funded to the Company post-closing, at a time of the Company’s selecting. The first tranche is meant to be funded in three separate loans, with one mortgage every to Urbn Leaf, Loudpack and the Company. The Rollup Financing additionally will include phrases in order that in the occasion that the first tranche is funded and the Company doesn’t shut on the acquisitions of Urbn Leaf and/or Loudpack, the Company is not obligated to ensure the particular portion of the first tranche that’s associated to the acquisition transaction that won’t shut. The Company intends to enter into a definitive settlement with Pelorus previous to the finish of 2021.

Recently, Pelorus introduced a number of hashish business firsts, together with: securing as much as a $20M line of credit score with a FDIC–insured financial institution at 4.75% and no non-usage charges; the closing of a personal placement of $42,250,000 mixture principal quantity of its 7% Senior Unsecured Notes; and growing the Company’s fund providing to $1B from the earlier $250M providing.

To date, Pelorus has accomplished 58 industrial actual property mortgage transactions and has  deployed $225M to hashish companies and actual property house owners, comprising 1,850,000 sq. ft. in eight states throughout the U.S. With the capacity to approve building attracts to reimburse the debtors in a median of one to a few days and with one settlement masking the financing of the whole venture, the Pelorus Fund helps to stabilize money circulate for purchasers to allow them to stay centered on their core enterprise objectives and aims.

About Pelorus Equity Group

Pelorus Equity Group is the main supplier of value-add bridge industrial actual property loans in the multi-billion greenback hashish business. The firm’s Pelorus Fund, a personal mortgage actual property funding belief (“mREIT”), presents a vary of modern transactional options addressing the various wants of actual property buyers and portfolio managers, and its versatile acquisition and bridge lending applications are the direct consequence of our involvement in additional than 5,000 transactions of various measurement and complexity. Since 1991, our principals have participated in additional than $1B of actual property funding transactions utilizing each debt and fairness options. We draw on our intensive expertise to quickly perceive a chance, construction a logical answer and execute a well timed shut. For extra info, go to 

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