Pelorus Equity Group Announces US $ 77.3 Million Debt Funding Letter of Intent on Harborside Announcing Business Combination with Urbn Leaf and Loudpack, Creating StateHouse Holdings, a Leading California Company in the cannabis field


Provider of value-added bridging commercial real estate loans to cannabis businesses and owners expected to provide non-dilutive capital, leveraging StateHouse’s large real estate portfolio

NEWPORT BEACH, Calif., November 30, 2021 (GLOBE NEWSWIRE) – Pelorus Equity Group (“Pelorus” or “Company”), the leading provider of value-added bridging commercial real estate loans for cannabis companies and owners of cannabis-related real estate, has announced its Pelorus Fund (the “Company”), a private mortgage real estate investment trust (“mREIT”) with properties related to the consumption of cannabis and cannabis, has entered into a letter of intent (“LOI”) to complete StateHouse Holdings real estate financing (as defined below) of US $ 77.3 million in non-dilutive mortgage financing, which should free up the value of the StateHouse Real Estate Portfolio, as well as providing significant growth capital for the company [see “Concurrent Financing” below for further details].

The letter of intent follows Harborside Inc. (“Harborside”), a California-focused, vertically integrated cannabis company, entering into definitive agreements (the “Definitive Agreements”) to acquire UL Holdings Inc. (“Urbn leaf“), one of the largest cannabis retailers in California with a dominant position in Southern California (the” Transaction Urbn Leaf “), and LPF JV Corporation (“Sound pack“), a leading manufacturer, grower and distributor of award-winning cannabis brands in California (the” Loudpack Transaction “and, together with the Urbn Leaf Transaction, collectively, the” Transactions “). Following completion of the Transactions, Harborside is expected to be rebranded as StateHouse Holdings (“StateHouse”), subject to shareholder and regulatory approval.

“We are delighted to fund such an interesting transaction and delighted that this is the largest loan Pelorus has funded to date, held 100% on our balance sheet,” said Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund. “As we continue to grow our assets under management, we are now able to provide lending solutions to the country’s largest cannabis companies. With our flexible capital, we are able to structure capital market solutions for any complex transaction and sponsors can have absolute confidence in our ability to perform. We are convinced that Pelorus is both a price and offer structure leader in the cannabis real estate market and we look forward to working with other major operators in the industry.

“We are delighted to be able to finance such a large rollup in the California market,” said Travis Goad, Managing Partner of Pelorus Equity Group. “We believe the combined companies will be a great player in the future. This loan is one of our firsts in our new low cost stabilized loan program. We expect this stabilized loan program will continue to be the best. in its class. financing option for cannabis operators with cash assets, especially for complex transactions like this. Pelorus is constantly innovating, finding new financing solutions for the cannabis real estate market, and we are look forward to helping more cannabis owners and operators as we expand the power and reach of our growing portfolio. ”

Simultaneous funding: Cumulative funding
In connection with the Transactions, the Company signed a non-binding term sheet with Pelorus Equity Group for a total of US $ 77.3 million in debt financing (the “Working Capital Financing”), which would be used primarily to repay certain existing loans and provide additional working capital to the company, Urbn Leaf and Loudpack. The cumulative financing would contain a nominal interest rate of 10.25%, together with set-up, closing and other specified transaction costs, and would be secured by certain real estate assets and cannabis licenses of the Company, Urbn Leaf and Loudpack. It would also be subject to debt service ratio requirements, interest reserves, certain inter-company guarantees and defaults, subordination and inter-creditors agreements, as well as a general guarantee of undertaking on the part of the Company. intended to be financed in two tranches, the first occurring before the closing of the Urbn Leaf and Loudpack acquisitions, and the second tranche to be allocated to the Company after closing, at a time of the Company’s choice. The first tranche is intended to be financed in three separate loans, with one loan each to Urbn Leaf, Loudpack and the Company. The Rollup Financing will also contain conditions such that in the event that the first tranche is financed and the Company does not close the acquisitions of Urbn Leaf and / or Loudpack, the Company is no longer obliged to guarantee the specific part of the first installment. which is linked to the acquisition transaction which will not be concluded. The Company intends to enter into a definitive agreement with Pelorus before the end of 2021.

Recently, Pelorus announced several firsts in the cannabis industry, including: obtaining a line of credit of up to $ 20 million from a 4.75% FDIC-insured bank and no non-payment fees. -use ; the closing of a private placement in the aggregate principal amount of $ 42,250,000 of its 7% Senior Unsecured Notes; and increase the company’s supply of funds to $ 1 billion from the previous offering of $ 250 million. To date, Pelorus has completed 58 commercial real estate loan transactions and deployed $ 225 million for cannabis companies and real estate owners, comprising 1,850,000 square feet in eight states in the United States. on average one to three days and with an agreement covering funding for the entire project, the Pelorus Fund helps stabilize clients’ cash flow so they can stay focused on their core business goals.

About Pelorus Equity Group
Pelorus Equity Group is the leading provider of value-added bridging commercial real estate loans to the multi-billion dollar cannabis industry. Of the society Pelorus Fund, a private mortgage real estate investment trust (“mREIT”), offers a range of innovative transactional solutions to meet the diverse needs of real estate investors and portfolio managers, and its flexible acquisition and bridging loan programs are a direct result of our involvement in more than 5,000 transactions of varying size and complexity. Since 1991, our leaders have participated in over $ 1 billion in real estate investment transactions using both debt and equity solutions. We draw on our vast experience to quickly understand an opportunity, structure a logical solution, and execute a close in a timely manner. For more information visit https://www.pelorusequitygroup.com/.

Investor contact:
Pelorus Equity Group
ir@pelorusequitygroup.com

Media contact:
Ellen melody
ellen@mattio.com
570-209-2947


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