Privately owned Pelorus Equity Group
has closed an $11.8 million financing with Juva Life Inc. (OTC: JUVAF)
, a life science company with pharmaceutical research and development and consumer-facing operations in cannabis production and distribution. Pelorus
said the primary purpose of the financing was to finance the exercise of the tenant’s 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 said it 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,” said 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.”
Juva was founded by pioneers in the science and business of cannabis and guided by a team of highly-acclaimed medical professionals. The company leverages revenue derived from its retail operations to advance its consumer and clinical development efforts of Juva-019 and Juva-041, as well as other potentially valuable non-cannabinoid bioactives with significant consumer and pharma products applications. In April, Juva Retail RWC Inc was granted a license to operate a retail cannabis storefront in Redwood City, California, at 2301 Broadway. Juva was granted one of only four approvals allowing storefront retail cannabis businesses in commercial and mixed-use zones, following a rigorous and highly competitive application process.
“I am extremely pleased to close this round of debt financing, especially given the recent distressed capital markets and economic conditions,” said Juva CEO and Founder Doug Chloupek. “I believe it is a testament to the excitement around Juva’s cannabis operations as well as our clinical research initiatives. As our cannabis operations continue to grow and generate revenue, it was imperative that we secure our real estate holdings while advancing our pharmaceutical programs. This financing allows us to accomplish both of these goals, while retaining significant equity in our Stockton real estate asset. Additionally, the financing will also provide us with the capital needed to finish construction on our downtown Redwood City retail store which, upon completion, will create a new revenue stream for Juva.”