Pelorus Equity Group Announces US$77.3M Rollup Debt Financing Letter of Intent on the Heels of Harborside Announcing Business Combination with Urbn Leaf and Loudpack, Creating StateHouse Holdings, a Leading California Cannabis Company

Provider of Value-Add Bridge Commercial Real Estate Loans for Cannabis Businesses and Owners Expected to Provide Non-Dilutive Capital, Leveraging StateHouse's Significant Real Estate Portfolio

NEWPORT BEACH, Calif., Nov. 30, 2021 (GLOBE NEWSWIRE) -- Pelorus Equity Group (“Pelorus” or “Company”), the leading provider of value-add bridge commercial real estate loans for cannabis businesses and owners with cannabis-related real estate, announced its Pelorus Fund (the “Company”), a privately held mortgage real estate investment trust (“mREIT”) with cannabis use and cannabis-related properties, has entered into a letter of intent (“LOI”) to complete StateHouse Holdings real estate financing (as defined below) of US$77.3M of non-dilutive real estate debt financing, which is expected to unlock value from the StateHouse real estate portfolio, as well as provide significant growth capital for the business [see "Concurrent Financing" below for further details].

The LOI comes on the heels of Harborside Inc. ("Harborside"), a California-focused, vertically integrated cannabis enterprise, entering into definitive agreements (the "Definitive Agreements") to acquire UL Holdings Inc. ("Urbn Leaf"), a top California cannabis retailer with a dominant position in Southern California (the "Urbn Leaf Transaction"), and LPF JV Corporation ("Loudpack"), a leading manufacturer, cultivator 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 renamed StateHouse Holdings ("StateHouse"), subject to shareholder and regulatory approval.

“We’re excited to fund such a compelling transaction and excited for this to be 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 scale our assets under management, we’re now able to provide lending solutions to the largest cannabis companies in the country. With our flexible capital, we’re able to structure capital markets solutions for any complex transaction and sponsors can have absolute confidence in our ability to perform. We’re confident Pelorus is both a price and deal structure leader in the cannabis real estate market and look forward to working with other large operators in the space.”

"We're excited to be able to fund such a significant rollup in the California market," said Travis Goad, managing partner of Pelorus Equity Group. "We think the combined companies will be a formidable player on a go-forward basis. This loan is one of our first in our new lower cost stabilized lending program. We expect this stabilized lending program will continue to be the best-in-class financing option for cannabis operators with cash flowing assets, especially for complex transactions such as this. Pelorus is constantly innovating, finding new financing solutions for the cannabis real estate market, and we look forward to helping more cannabis owners and operators as we expand the power and reach of our growing portfolio."   

Concurrent Financing: Rollup Financing
In connection with the Transactions, the Company has signed a non-binding term sheet with Pelorus Equity Group for a total of US$77.3M of debt financing (the "Rollup Financing''), which would be used primarily to retire certain existing loans and provide additional working capital to the Company, Urbn Leaf and Loudpack. The Rollup Financing would contain a nominal interest rate of 10.25%, along with specified origination, closing and other transaction fees, 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 cross-corporate guarantees and defaults, subordination agreements and intercreditor agreements, along with a general corporate guaranty from the Company. The Rollup Financing is intended to be funded in two tranches, with the first occurring prior to closing on the acquisitions of Urbn Leaf and Loudpack, and the second tranche to be funded to the Company post-closing, at a time of the Company's choosing. The first tranche is intended to be funded in three separate loans, with one loan each to Urbn Leaf, Loudpack and the Company. The Rollup Financing also will contain terms so that in the event that the first tranche is funded and the Company does not close on the acquisitions of Urbn Leaf and/or Loudpack, the Company is no longer obligated to guarantee the specific portion of the first tranche that is related to the acquisition transaction that will not close. The Company intends to enter into a definitive agreement with Pelorus prior to the end of 2021.

Recently, Pelorus announced several cannabis industry firsts, including: securing up to a $20M line of credit with a FDIC–insured bank at 4.75% and no non-usage fees; the closing of a private placement of $42,250,000 aggregate principal amount of its 7% Senior Unsecured Notes; and increasing the Company’s fund offering to $1B from the previous $250M offering. To date, Pelorus has completed 58 commercial real estate loan transactions and has deployed $225M to cannabis businesses and real estate owners, comprising 1,850,000 sq. ft. in eight states across the U.S. With the ability to approve construction draws to reimburse the borrowers in an average of one to three days and with one agreement covering the financing of the entire project, the Pelorus Fund helps to stabilize cash flow for clients so they can remain focused on their core business goals and objectives. 

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

Investor Contact:
Pelorus Equity Group

Media Contact:
Ellen Mellody