Pelorus Equity Group Closes $11.8 Million Debt Financing, Enabling Juva Life To Expand Cannabis Operations

Pelorus Equity Group, the leading provider of commercial real estate loans for the cannabis sector, has closed an $11.8 million financing with Juva Life Inc. JUVAF, a life science company with pharmaceutical research and development and consumer-facing operations in cannabis production and distribution.

The primary purpose of the financing, which closed on June 15, 2022, is to finance the exercise of the tenants purchase option on its recently completed Stockton cultivation facility, as well as provide working capital and R&D funding. The facility was recently completed at a cost of $17 million. Juva also plans to use a portion of the funds to further its clinical research development programs on Juva-019 and Juva-041, novel compounds targeting the treatment of inflammation.

“We’re thrilled to fund Juva to acquire its Stockton, California, facility,” stated Pelorus Equity Group CEO and manager of the Pelorus fund Dan Leimel. “In addition to advancing Juva’s research on its two compounds, this compelling transaction will support Juva’s development of products derived from cannabis that offer evidence-based therapeutics for the treatment of many challenging health conditions. As we continue to expand our assets under management, we look forward to continuing to provide leaders in the cannabis ecosystem with flexible capital markets solutions that meet the complex deal structures of large, mid-sized and small operators.”

The financing is secured by the assets of Juva and its subsidiaries, including the real estate held in Stockton. It also includes the issuance of 2.5 million warrants, each convertible into one common share of the company, exercisable at CA$0.18 ($0.14) per share for a period of three years post loan maturity. The loan bears a variable interest rate of 11.5% plus 1M SOFR (SOFR floor of 1.5%) over the 36-month term of the financing.

Photo by Giorgio Trovato on Unsplash

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