Pelorus Equity Groupa company that provides home loans for cannabis, completed its S$15.8 million debt financing agreement with TransCanna Holdings Inc., a California-based cannabis company. The loan proceeds will be used to refinance and expand TransCanna’s California facility, as well as construction costs and interest payments on existing debt.
“The successful pursuit of exciting investment opportunities from leading companies in the cannabis industry is what sets Pelorus apart,” said Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund. “I am thrilled to partner with TransCanna to evolve their cultivation capabilities and improve the availability of their award-winning products for the California market. I look forward to continuing to work with some of the biggest players in the industry and seeing our many partners continue to thrive in this growing market.
The $15.8 million credit facility bears interest at 14% per annum. If certain conditions are met after 18 months, the interest rate will be reduced to 12% per annum.
Blink Bob, CEO of TransCanna, said, “In a rapidly changing industry with many stringent regulations and requirements, Pelorus has played an important role in providing the capital needed for continued development. We are extremely excited to partner with the Pelorus team and fuel our growth in California.
As part of the loan, Pelorus issued, to an affiliate of the Company, warrants to purchase up to 51.21 million common shares of the Company. Each warrant entitles the affiliate to purchase, for a period of five years, one common share of the company at a price of $0.12, representing the closing price of common shares of the company on the Stock Exchange Canadian on July 29, 2022.
“We are delighted to continue to support the cannabis industry despite the broader market volatility,” said Pelorus Equity Group’s managing partner. Travis Goad. “As a lender through all phases of the business cycle, Pelorus continues to deploy capital to the right sponsors and opportunities. We look forward to Transcanna’s growth and future success.
Additional funding from TransCanna
In addition, TransCanna was successful in securing an additional $9.5 million in funding from Alpha Blue Ocean. Pursuant to this funding agreement, TransCanna has entered into an issuance agreement dated July 29, 2022 with Global Tech Opportunities 2, an ABO managed investment fund which provides for the issuance of senior unsecured convertible debentures of in an aggregate principal amount of up to $9,500, each at a subscription price of 95% of its aggregate principal amount.
Additionally, the cannabis company settled a debt of $1.8 million.