Pelorus Equity Group lends $17.3 million to Michigan Cannabis Co, here are the details

Pelorus Equity Groupa company that provides home loans for cannabis, the closing of its $17.3 million debt financing agreement with Vassar Acquisitions Property Management, LLC and its cannabis operating entity, Canapa Valley Farms, and affiliated entities.

Product of ready, closed on October 27, 2022will be supporting Canapa Valley Farms’ construction of its state-of-the-art 90,000 square foot greenhouse and 8,500 square foot processing facilities.

The details

Under the terms of the agreement, Pelorus issued $17.3 million five-year term loan with a floating interest rate of one-month guaranteed overnight rate plus 12.5%, with a SOFR floor of 2.5%.

After month 18, the loan will become eligible for a one-month rate cut of SOFR plus 10%, with a SOFR floor of 2.5%, subject to borrowers complying with the agreed measures.

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 terms and requirements, as well as a corporate guarantee from Vassar and a personal guarantee from its principals.

why is it important

“This agreement will help accelerate Canapa Valley Farms’ cannabis-focused growth initiatives and collaborations, such as its exclusive partnership to produce premium flowers and pre-rolls for award-winning Exotic Genetix in the Great Lakes State.” , Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund, said.

Canapa Valley Farms Manager Frank DeNardo called the agreement with Pelorus “an important component in completing our project and bringing our facilities online.”

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Photo: Courtesy of Geralt and Kindel Media by Pixabay

Harry L. Blanchard