NEWPORT BEACH, Calif., Nov. 15, 2022 (GLOBE NEWSWIRE) -- Pelorus Equity Group (“Pelorus” or “the Company”), the leading provider of commercial real estate loans for the cannabis sector, announced the closing of its US$17.3 million debt financing agreement (the “Loan”) with Vassar Acquisitions Property Management, LLC (“Vassar”) and its cannabis operating entity, Canapa Valley Farms, an ultramodern agricultural company focused on sustainable cannabis cultivation and processing techniques, and affiliated entities (together the “Borrowers”). Proceeds from the Loan, which closed on October 27, 2022, will support Canapa Valley Farms’ buildout of its state-of-the-art 90,000 sq. ft. greenhouse and 8,500 sq. ft. processing facilities.
“With a deep understanding of cannabis operations and high-level of CPG experience, Vassar has already invested substantial equity into 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, like its exclusive partnership to produce premium-quality flower and pre-rolls for award-winning Exotic Genetix in the Great Lake State.”
“Our financing with Pelorus is an important component in getting our project complete and facility online,” said Canapa Valley Farms Manager Frank DeNardo. “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 team at Pelorus, from the term sheet to the closing, was great to deal with,” added Canapa Valley Farms Corporate Counsel Kaveh Kashef. “They worked hard and were professional all along the way. We look forward to our continued relationship with Pelorus.”
Under the terms of the agreement, Pelorus has issued a $17,330,000 five-year term loan with a floating interest rate of one-month Secured Overnight Financing Rate (“SOFR”) plus 12.5%, with a 2.5% SOFR floor. Following month 18, the loan will become eligible for a rate decrease to one-month SOFR plus 10%, with a 2.5% SOFR floor, subject to the Borrowers meeting agreed-upon metrics. 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, along with a corporate guarantee from Vassar and a personal guarantee from its principals.
“We greatly enjoyed working with Vassar and Canapa Valley Farms’ executive team, which has a combined 50 years of experience in the cannabis space, and includes seasoned executives from the craft alcohol industry,” said Pelorus Equity Group Managing Partner Travis Goad. “Vassar and Canapa Valley Farms have state-of-the-art automation systems at the site, which should enable them to reduce production and operating costs via a leaner employee base and minimized touchpoints from seed-to-sale. We are eager to see them excel in Michigan’s cannabis market.”
About Pelorus Equity Group
Pelorus Equity Group (“Pelorus”), the leading provider of commercial real estate loans for the cannabis sector, and its Pelorus Fund, a private mortgage real estate investment trust (“mREIT”), are changing the commercial real estate lending landscape in the cannabis sector. Pelorus Fund offers a range of innovative transactional solutions to address the diverse needs of real estate investors and portfolio managers, and its flexible acquisition and bridge lending programs are the direct result of the firm’s involvement in more than 5,000 transactions of varying size and complexity. Since 1991, Pelorus’ principals quickly understand an opportunity, structure a logical solution, execute a timely close and have participated in more than $5B of real estate investment transactions using both debt and equity solutions. To date, Pelorus has completed 73 commercial real-estate loan transactions and deployed $537 million to cannabis businesses and real estate owners, comprising nearly 4,473,000 sq. ft. in 10 states across the U.S. With the ability to fund approved construction draws for reimbursement in an average of one to three days and a single agreement covering the financing of the entire project, the Pelorus Fund helps to stabilize cash flow for its clients, so they are able to remain focused on their core business goals and objectives. 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 delivering the highest quality products and services, driven by industry-leading technology. When complete, Canapa Valley Farms’ operations will be conducted from state-of-the-art 90,000 sq. ft. greenhouse and 8,500 sq. ft. processing facilities.
For further information, please contact:
Pelorus Equity Borrower/Broker Inquires:
info@pelorusequitygroup.com
Pelorus Fund Inquires:
ir@pelorusequitygroup.com
Pelorus Equity Group Media Contact:
Henry Robertson
914-417-8184
pelorus@mattio.com
