PELORUS EQUITY GROUP COMPLETES US$15.8 MILLION DEBT FINANCING ARRANGEMENT WITH TRANSCANNA
Loan provides financing for TransCanna’s 196,000 sq. ft. multi-purpose California facility
NEWPORT BEACH, Calif., Aug. 02, 2022 (GLOBE NEWSWIRE) — Pelorus Equity Group (“Pelorus,” or “the Company”), the leading provider of commercial real estate loans for the cannabis sector, is pleased to announce the closing of its US$15.8M debt financing agreement (the “Loan”) with TransCanna Holdings Inc. (“TransCanna”). The Loan proceeds will be used to refinance and develop TransCanna’s California facility, as well as for construction costs, and the payment of interest on existing debt.
“Successfully sourcing exciting investment opportunities with the cannabis industry’s leading companies is what sets Pelorus apart,” said Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund. “I am thrilled to partner with TransCanna to scale their cultivation capabilities and improve availability of their award-winning products for the California market. I look forward to continuing to work with some of the largest players in the industry and seeing our many partners continue to flourish in this growing market.”
“In a rapidly evolving industry with many strict regulations and requirements, Pelorus has been influential in providing the capital necessary for continued development,” said Bob Blink, CEO of TransCanna. “We are extremely excited to partner with the Pelorus team as well as to fuel our growth in California.”
The $15.8M debt facility accrues interest at 14% per annum. If certain requirements are met after eighteen (18) months, the interest rate will be reduced to 12% per annum.
In connection with the Loan, Pelorus issued, to an affiliate of the Company (the “Affiliate”), warrants to purchase up to 51,208,682 common shares of the Company (the “Loan Warrants”). Each Loan Warrant entitles the Affiliate to purchase, for a period of five years, one common share of the Company (a “Warrant Share“) at a price of $0.12 (the “Exercise Price”), representing the closing price of the Company’s common shares on the Canadian Securities Exchange (the “Exchange”) on July 29, 2022. No common shares may be issued on exercise of the Loan Warrants if the issue of such shares would cause the holder (and any person acting jointly and in concert with the holder) from holding beneficial ownership or having control or direction over greater than 9.9% of the outstanding common shares. The Loan Warrants are subject to the Company’s standard Put/Call Structure.
“We’re excited to continue to support the cannabis industry despite the broader market volatility,” said Pelorus Equity Group Managing Partner Travis Goad. “A lender through all phases of the business cycle, Pelorus continues to deploy capital to the right sponsors and opportunities. We look forward to Transcanna’s growth and future success.”
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 70 commercial real-estate loan transactions and deployed more than $451 million to cannabis businesses and real estate owners, comprising nearly 4,000,000 sq. ft. in eight 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.
About TransCanna Holdings Inc.
TransCanna Holdings Inc. is a California based, Canadian listed company building Cannabis-focused brands for the California lifestyle, through its wholly-owned California subsidiaries. For further information, please visit the Company’s website at www.transcanna.com or email the Company at firstname.lastname@example.org.
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