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NEWPORT BEACH, Calif., Nov. 15, 2022 (GLOBE NEWSWIRE) — Pelorus Equity Group (“Pelorus” Where “the company“), the leading provider of commercial real estate loans to the cannabis industry, announced the closing of its US$17.3 million debt financing agreement (the “Ready”) with Vassar Acquisitions Property Management, LLC (“Vassar”) and its cannabis operating entity, Canapa Valley Farmsa state-of-the-art agricultural business focused on sustainable cannabis cultivation and processing techniques, and affiliated entities (together “Borrowers”). Proceeds from the loan, which ended October 27, 2022, will support Canapa Valley Farms’ construction of its state-of-the-art 90,000 square foot greenhouse and 8,500 square foot processing facilities.
“With an in-depth understanding of cannabis operations and a high level of CPG experience, Vassar has already invested substantial capital in its Michigan facility,” said Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund. “This agreement will help accelerate Canapa Valley Farms’ cannabis-focused growth initiatives and collaborations, such as its exclusive partnership to produce premium flowers and pre-rolls for award-winning Exotic Genetix in the Great Lakes State. »
“Our funding with Pelorus is an important part of bringing our project to fruition and bringing our facilities online,” said Frank DeNardo, director of Canapa Valley Farms. “We look forward to expanding Canapa Valley Farms operations in Michigan and delivering high-quality cannabis products to consumers in the coming year.”
“The entire Pelorus team, from term sheet to closing, has been tremendous,” added Kaveh Kashef, legal counsel for Canapa Valley Farms. “They worked hard and were professional the whole way through. We look forward to continuing our relationship with Pelorus.
Under the terms of the agreement, Pelorus issued a $17,330,000 five-year term loan with a one-month variable interest rate Secured Overnight Funding Rate (“SOFR”) plus 12, 5%, with a SOFR floor of 2.5%. After month 18, the loan will become eligible for a one-month rate cut of SOFR plus 10%, with a SOFR floor of 2.5%, subject to actions agreed by the borrowers at the meeting. The loan is secured by the Borrowers’ 104,069 square foot cannabis cultivation, processing and testing facility located on 90 acres in Vassar, Michigan, and is subject to customary covenants and requirements, as well as a corporate guarantee from Vassar and a personal guarantee from its directors.
“We have greatly enjoyed working with the management team at Vassar and Canapa Valley Farms, which brings together 50 years of cannabis experience and includes seasoned craft alcohol industry executives,” said Travis Goad, managing partner of Pelorus Equity Group. “Vassar and Canapa Valley Farms have state-of-the-art automation systems on site, which should enable them to reduce production and operating costs through a lean employee base and minimized seed for sale. We look forward to seeing them excel in the Michigan cannabis market. »
About Pelorus Equity Group
Pelorus Equity Group (“Pelorus”), the leading provider of commercial real estate lending to the cannabis industry, and its Pelorus Fund, a private mortgage real estate investment trust (“mREIT”), are changing the landscape of commercial real estate lending in the industry cannabis. Pelorus Fund offers a range of innovative transactional solutions to meet the diverse needs of property investors and portfolio managers, and its flexible acquisition and bridge loan programs are the direct result of the company’s involvement in more than 5 000 transactions of varying size and complexity. Since 1991, Pelorus leaders quickly understand an opportunity, structure a logical solution, execute a timely close, and have participated in over $5 billion in real estate investment transactions using both debt and equity solutions. equity. To date, Pelorus has completed 73 commercial real estate loan transactions and deployed $537 million to cannabis businesses and homeowners, comprising nearly 4,473,000 square feet across 10 states across the United States. With the ability to finance construction drawdowns approved for repayment in an average of one to three days and a single agreement covering financing for the entire project, the Pelorus Fund helps stabilize its clients’ cash flow, so so they can stay focused on their main business goals. For more information, visit https://pelorusequitygroup.com.
About Canapa Valley Farms
Canapa Valley Farms is a vertically integrated cannabis company located in Vassar, Michigan. Its team is dedicated to providing the highest quality products and services, based on cutting-edge technology. Once completed, Canapa Valley Farms operations will be conducted from a state-of-the-art 90,000 square foot greenhouse and 8,500 square foot processing facilities.
For more information, please contact:
The Borrower/Broker Pelorus Equity enquires:
[email protected]
The Pelorus Fund inquires:
[email protected]
Pelorus Equity Group Media Contact:
Henry Robertson
914-417-8184
[email protected]
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