Cannabis Lender Pelorus Gives Business Update For 2021

Private company Pelorus Equity Group has updated the business world with its operational results. The company is known for providing bridge commercial real estate loans for cannabis businesses and owners with cannabis-related real estate. The company’s privately-held mortgage real estate investment trust, the Pelorus Fund, ended the year with $243 million assets under management and $193 million of equity. This amounted to a 434% growth year-over-year in 2021.

“As cannabis operators and landlords with commercial real estate continued to enter the sector,  we saw the need for funding to support build-outs, expansions and upgrades spike in 2021,” said  Dan Leimel, CEO of Pelorus Equity Group and Manager of the Pelorus Fund. “In 2022, we expect to see a sustained need for commercial real estate funding to continue. With our ability to structure asset-based lending solutions for complex transactions, we provide our clients innovative loan programs that enable them to scale their operations, and cross numerous thresholds that most thought were unattainable. In the coming year, we plan to aggressively scale our assets under management while bringing more novel deal structures and lending solutions to some of the largest and fastest-growing cannabis companies.”
Pelorus and Pelorus Fund listed the following 2021 highlights in a statement:
  • Upsized Pelorus Fund’s offering to $1B from its previous $250M offering.

  • Pelorus Fund outperformed its original 2021 growth projections of 300% by 134%.

  • Pelorus saw 434% year-over-year growth, ending the year with $243 million AUM and $193 million of equity – more equity than any other privately held or publicly traded commercial real estate lender in the cannabis space.

  • First in the cannabis industry to secure up to a $20M line of credit with an FDIC–insured bank at 4.75% and no non-usage fees.

  • First to close a bond offering of $42,250,000 aggregate principal amount of its 7% Senior Unsecured Notes in the cannabis sector.

  • Pelorus Fund, along with its Notes, became the first privately held mREIT to receive an Investment Grade BBB+ rating from the Egan-Jones Ratings Company.

  • Pelorus Fund entered into a letter of intent (“LOI”) to complete StateHouse Holdings’ real estate financing of US$77.3M of non-dilutive real estate debt financing.

  • Entered into a $19 million construction financing loan with Item 9 Labs Corp., a vertically integrated cannabis dispensary franchisor and operator that produces premium, award-winning products.

  • Since 2016, Pelorus has originated 59 commercial real estate loan transactions and deployed $244 to cannabis-use real estate owners, comprising nearly 2 million sq. ft. in eight states across the U.S.

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