A leading provider of additional commercial real estate loans in the cannabis sector also announced that it has completed 55 loan deals and placed $ 204 million, including 1,750,000 sq. M. Ft. in eight states
NEWPORT BEACH, CA Aug 26, 2021 (GLOBE NEWSWIRE) – Pelorus Equity Group (“Pelorus”), a leading provider of complementary commercial real estate loans to cannabis businesses and cannabis-related property owners, announced that its Pelorus Foundation, a private equity fund for mortgage real estate (‘mREIT’), has a construction finance loan of US $ 19 million. Element 9 Labs Corp.… (OTCQX: INLB) (“Item 9 Labs” or “Company”), a vertically integrated franchisor and cannabis dispensary operator that produces premium, award-winning products.
The proceeds from the Pelorus high performance loan will finance the acquisition of 44 acres of adjacent land adjacent to Item 9 Labs’ 19,200 sq. Ft in Arizona (“Arizona Facility”), which has been in operation since 2017. The loan will also be used to finance the development of the main site. Phase 1 construction consists of three additional steel buildings and two greenhouses. This initial expansion adds 9,600 sq. Ft indoor grow, 9,600 sq. Ft of laboratory and packaging and 9,600 sq. Ft of headroom to support the addition of two 18,000 sq. Feet. The total expansion will consist of six more buildings: one dedicated to expanding the Company’s laboratory and ancillary facilities for finished products, and the other five for home cultivation. When completed, the Item 9 Labs site will cover over 640,000 sq. Feet of cannabis cultivation operations.
In Arizona, Item 9 Labs currently grows and manufactures a range of cannabis products, including over 75 high quality cannabis strains sold in 60% of Arizona pharmacies, as well as 150 differentiated cannabis products. In Nevada, Item 9 Labs will use the proceeds to complete its 20,000 square foot modern cultivation, manufacturing and laboratory facility. Ft (“Plant in Nevada”) and manufacturing products for the Silver State market.
The total loan balance at Item 9 Labs facilities in Arizona and Nevada foresees a principal amount of approximately $ 19 million at an annual interest rate of 16% for 18 months. Construction is expected to be completed within the next three years and will increase Item 9 Labs’ ability to meet the growing consumer market and wholesale needs in Arizona and Nevada.
“We’re thrilled to partner with Item 9 Labs on these exciting new commercial real estate and development projects in Arizona and Nevada — two fast growing adult states with high demand,” he said. Dan Leimel, CEO of the Pelorus Equity Group and Manager of the Pelorus Fund. “Our team was delighted to quickly approve the company’s loan so that it can continue to offer consumers the premium products they are known for, generate new revenue streams and add value to its shareholders. We look forward to working closely with Item 9 Labs and other cannabis operators on additional state-of-the-art projects as we rapidly expand our portfolio. ”
“Pelorus moved quickly on our challenging deal and was able to help overcome numerous obstacles to closure when other previous potential lenders failed to meet their obligations. With the Pelorus team on our side supporting our growth plans, we are well positioned to complete our expansion and capture more market share, ”said Bobby Mikkelsen, Chief Financial Officer of Item 9 Labs Corp…
To date, Pelorus has completed 55 commercial real estate loan transactions and has funded $ 204 million to cannabis companies and property owners, representing 1,750,000 sq. Feet in eight US states. Within three days and with one agreement covering the financing of the entire project, Pelorus Fund helps stabilize its clients’ cash flow so that they can focus on their core business goals and objectives.
About Pelorus Equity Group
Pelorus Equity Group is a leading provider of value-added commercial real estate bridging loans in the multi-billion dollar cannabis industry. Company Pelorus Foundation, a private real estate mortgage fund (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 bridge lending programs are a direct result of our involvement in other projects. more than 5000 transactions of various sizes and complexity. Since 1991, our executives have been involved in over $ 1 billion in real estate investment transactions using both debt and equity solutions. We draw on our extensive experience to quickly understand the opportunity, structure the logical solution, and execute timely closings. For more information visit https://www.pelorusequitygroup.com/…
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