NEWPORT BEACH, Calif., June 21, 2022 (GLOBE NEWSWIRE) — Pelorus Equity Group (“Pelorus”), the leading provider of commercial real estate loans to the cannabis industry, announced the closing of an $11.8 million financing with Juva Life Inc. (“Juva Life”, “Juva” or the “Company”), a life sciences company with pharmaceutical research and development activities and consumer activities in the production and distribution of cannabis.
The primary purpose of the financing, which closed on June 15, 2022, is to fund the exercise of the tenants’ purchase option on its recently completed Stockton cultivation facility, as well as to provide working capital and funding for R&D. The facility was recently completed at a cost of $17 million. Juva also plans to use a portion of the funds to continue its clinical research development programs on Juva-019 and Juva-041, novel compounds targeted at treating inflammation.
“We are thrilled to fund Juva to acquire its plant in Stockton, California,” said Pelorus Equity Group CEO and Pelorus Fund Manager Dan Leimel. “In addition to advancing Juva’s research into its two compounds, this compelling transaction will support Juva’s development of cannabis-derived products that offer evidence-based therapies for the treatment of many challenging health conditions. As we continue to grow our assets under management, we look forward to continuing to provide leaders in the cannabis ecosystem with flexible capital markets solutions that address the complex transaction structures of large, medium and small operators.
“I am extremely pleased to close this round of debt financing, especially given the recent financial markets and distressed economic conditions,” said Juva CEO and Founder Doug Chloupek. “I think it speaks to the excitement of Juva’s cannabis operations as well as our clinical research initiatives. As our cannabis operations continue to grow and generate revenue, it was imperative that we secure our holdings. while advancing our pharmaceutical programs. This financing allows us to achieve both of these goals, while maintaining significant equity in our Stockton real estate asset. In addition, the financing will also provide us with the capital needed to complete the construction of our downtown Redwood City retail store which, when completed, will create a new revenue stream for Juva.
Travis Goad, Managing Partner of Pelorus Equity Group added, “As the cannabis industry grows, we continue to see significant demand for commercial real estate financing. Over the past year, we have deployed numerous innovative credit solutions for complex transactions, and over the coming year, we look forward to providing our cannabis clients with more innovative lending solutions and lending programs that will enable them to strategically expand their operations and achieve their business goals and objectives.
The funding is secured by the assets of Juva and its subsidiaries, including real estate held in Stockton. It also includes the issuance of 2,500,000 warrants, each convertible into one common share of the Company, exercisable at C$0.18 per share for a period of three years after the maturity of the loan. The loan bears a variable interest rate of 11.5% plus 1M SOFR (SOFR floor of 1.5%) over the 36-month term of the financing.
To date, Pelorus has completed 68 commercial real estate loan transactions and deployed $429 million to cannabis businesses and property owners, comprising 3.25 million square feet across eight states across the United States. With the ability to approve construction drawdowns to repay borrowers on average one – to three days – and through a single agreement covering the financing of the entire project – the Pelorus Fund helps stabilize the cash flow of customers so that they can stay focused on their core business. For more information, visit https://pelorusequitygroup.com/.
About Pelorus Equity Group
Pelorus Equity Group (“Pelorus”), the leading provider of commercial real estate loans to cannabis businesses and cannabis-related real estate owners, and its fund Pelorus, a private mortgage real estate investment trust (“mREIT”), are changing commercial real estate cannabis lending landscape.
Pelorus Fund offers a range of innovative transactional solutions to meet the diverse needs of real estate investors and portfolio managers, and its flexible acquisition and bridge loan programs are the direct result of the company’s participation in more than 5,000 transactions of varying size and complexity.
Since 1991, Pelorus leaders quickly understand an opportunity, structure a logical solution and execute a timely close and have participated in over $5 billion in real estate investment transactions using both debt and debt solutions. equity. To date, Pelorus has completed 68 commercial real estate loan transactions and deployed over $429 million to cannabis businesses and property owners, comprising over 3,250,000 square feet in eight states across the United States.
With the ability to finance approved construction drawdowns for repayment on average from one to three days and a single agreement covering financing for the entire project, the Pelorus Fund helps stabilize its clients’ cash flow, so that they can stay focused on their main business goals and objectives. For more information, visit https://pelorusequitygroup.com/.
About Juva Life Inc. (CSE: JUVA) (OTCQB: JUVAF) (ENG: 4VV)
Juva Life uses cutting-edge science to discover, develop and market safe and effective wellness and pharmaceutical products, both in the cannabis consumer segment and in the non-cannabinoid medical industry. The company is successfully executing on its 2018 roadmap, initially starting with the standardization of cultivation, extraction and formulation to deliver repeatable benefits to consumers. Juva is building on these skills in natural product process chemistry, to now include discovery pharmacology. The Company will leverage revenues from its retail operations to advance its clinical and consumer development efforts of Juva-019 and Juva-041, as well as other potentially valuable non-cannabinoid bioactives with important applications in consumer products and pharmaceuticals. Juva strives to challenge the cannabis market with the industry’s investment-grade, next-generation business model. Learn more about: https://juvalife.com/.
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