Pelorus Equity Group closed on a $15.8 million debt financing agreement with TransCanna Holdings Inc. The company said in a statement that the proceeds would be used to refinance and develop TransCanna’s California facility, as well as for construction costs, and the payment of interest on existing debt.
TransCanna was founded by industry pioneer and advocate Bob Blink – with one lamp and a couple of plants 25 years ago. Following medical cannabis legalization in 1996, he was one of the first Cultivator/Distributors on the legal market in California. He converted his operation to serve the recreational cannabis market in 2016, forming Lyfted Farms, Inc. TransCanna Holdings acquired Lyfted Farms in 2019, and now the parent and subsidiary companies are working in tandem to build the enterprise into the largest and most operationally diverse and agile business of its kind in California.
“Successfully sourcing exciting investment opportunities with the cannabis industry’s leading companies is what sets Pelorus apart,” said Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund. “I am thrilled to partner with TransCanna to scale their cultivation capabilities and improve the availability of their award-winning products for the California market. I look forward to continuing to work with some of the largest players in the industry and seeing our many partners continue to flourish in this growing market.”
The $15.8 million debt facility accrues interest at 14% per annum. If certain requirements are met after 18 months, the interest rate will be reduced to 12% per annum. In connection with the loan, Pelorus issued warrants to purchase up to 51,208,682 common shares of the company. No common shares may be issued on exercise of the Loan Warrants if the issue of such shares would cause the holder (and any person acting jointly and in concert with the holder) from holding beneficial ownership or having control or direction over greater than 9.9% of the outstanding common shares. The Loan Warrants are subject to the company’s standard Put/Call Structure.
“In a rapidly evolving industry with many strict regulations and requirements, Pelorus has been influential in providing the capital necessary for continued development,” said Bob Blink, CEO of TransCanna. “We are extremely excited to partner with the Pelorus team as well as to fuel our growth in California.”
Posted by: Times Of Hemp , TOH , #TOH , #TimesOfHemp , https://www.timesofhemp.com