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Completes first funding totaling $45.35 M to Harborside, Urbn Leaf, and Loudpack ahead of close of StateHouse Holdings transaction

NEWPORT BEACH, Calif., Feb. 11, 2022 (GLOBE NEWSWIRE) — Pelorus Equity Group (“Pelorus” or “the Company”), the leading provider of value-add bridge commercial real estate loans to cannabis businesses and owners with cannabis-related real estate, is pleased to announce the first closing of its previously announced US$77.3M non-dilutive real estate debt financing (“the Rollup Financing”) with Harborside Inc. (“Harborside”) (CSE: HBOR) (OTCQX: HBORF). The initial funding of US$45.35M, the first of two planned tranches, includes three individual loans to Harborside, Urbn Leaf Holdings Inc. (“Urbn Leaf”), and Loudpack JV Corporation (“Loudpack”). The proceeds will be used primarily to retire certain existing loans and provide additional working capital.

Harborside previously announced it had entered into a definitive agreement to acquire Urbn Leaf, and Loudpack (the “StateHouse Holdings Transaction”), and upon completion of this transaction Harborside is expected to be renamed StateHouse Holdings, subject to shareholder and regulatory approval.

“We are extremely proud to be an important partner during this transformational event in the California market,” said Dan Leimel, CEO of Pelorus Equity Group, and manager of the Pelorus Fund. “The impact of the StateHouse Holdings transaction will be hugely beneficial towards the overall development of the legal cannabis space within the state of California. By partnering with leading companies in the space we have expanded the lending options available for cannabis operators and become the preferred partner for some of the largest players in the industry with our flexible capital and solutions for complex transactions.”

“The growth that Pelorus has seen over the past two years has been incredible, and seeing this loan, the first in our new lower cost stabilized lending program, come to fruition is a great day for us,” said Travis Goad, managing partner of Pelorus Equity Group. “We expect this new program will be a best-in-class option for operators and look forward to driving the progression of the market by collaborating with companies to develop effective and price sensitive solutions.”

“We are pleased to welcome Pelorus as our financial partner as we combine operations with Loudpack and Urbn Leaf to create StateHouse Holdings, a new market leader in California,” said Matt Hawkins, Chairman and interim CEO of Harborside Inc. “Pelorus’s willingness and ability to work with us to customize the financing was critical in enabling us to ideally structure our transactions, illustrating why they are the go-to player in cannabis finance.”

The second tranche of the Rollup Financing will be funded upon completion of the StateHouse Holdings Transaction and at a time of StateHouse Holdings choosing. The Rollup Financing contains a nominal interest rate of 10.25%, along with specified origination, closing and other transaction fees, and will be secured by certain real estate assets and cannabis licenses of Harborside, Urbn Leaf and Loudpack. The Rollup Financing is subject to debt service ratio requirements, interest reserves, certain cross-corporate guarantees and defaults, subordination agreements and intercreditor agreements, along with a general corporate guarantee from the Harborside.

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About Pelorus Equity Group
Pelorus Equity Group is the leading provider of value-add bridge commercial real estate loans in the multi-billion-dollar cannabis industry. The Company’s Pelorus Fund, a private mortgage real estate investment trust (“mREIT”), offers a range of innovative transactional solutions addressing the diverse needs of real estate investors and portfolio managers, and its flexible acquisition and bridge lending programs are the direct result of our involvement in more than 5,000 transactions of varying size and complexity. Since 1991, our principals have participated in more than $1B of real estate investment transactions using both debt and equity solutions. We draw on our extensive experience to rapidly understand an opportunity, structure a logical solution and execute a timely close. For more information, visit

Media Contact:
Max Borchardt

Eliza Andrews

Pelorus Capital Group