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Pelorus Equity Group, a provider of commercial real estate loans for the cannabis sector, closed its $45.5 million debt financing agreement with TerrAscend Corp. TER TRSSF, and its subsidiaries, TerrAscend NJ, LLC and HMS Hagerstown, LLC. TerrAscend is a leading North American cannabis operator with operations in Pennsylvania, New Jersey, Maryland, Michigan and California, as well as licensed production in Canada. Proceeds from the loan, which closed Oct. 11, 2022, will support TerrAscend’s ongoing growth initiatives.
“With this agreement, we are excited to help fuel TerrAscend’s growth and long-term business goals,” stated Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund. “Our investment and lending philosophy is focused on being honest, upfront and doing what we say we’re going to do for both our borrowers and our investors. As the demand for capital continues to increase in tandem with the growth of the cannabis industry, we plan to deliver even more innovative, flexible lending solutions and stabilized loans like this one to meet the needs of a wide range of clients, including MSOs, SSOs and ancillary businesses.”
Under the terms of the agreement, Pelorus has issued a floating rate loan currently bearing interest of 12.77% based on prevailing Secured Overnight Financing Rate (SOFR), with a 2.5% SOFR floor. The duration of the loan is 60 months, with a minimum earned interest period of 36 months. The loan is secured by the Borrowers real estate assets in New Jersey and Maryland and is subject to customary covenants and requirements.
“We are pleased to announce this non-dilutive financing at attractive terms given the current market environment,” Jason Wild, executive chairman of TerrAscend said in a statement. “The Pelorus team has been a pleasure to work with, delivering exactly what they promised. We look forward to a long successful partnership as we continue to grow.”
To date, Pelorus has completed 72 commercial real estate loan transactions and deployed $500+ million to cannabis businesses and real estate owners, comprising 4 million square feet in 10 states across the U.S.
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Photo: Benzinga Edit; Source: Shutterstock
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Image and article originally from www.benzinga.com. Read the original article here.