US$11M Financing Accelerates Growth and Development of Michigan’s Largest Black-Owned Cultivator and Processor
NEWPORT BEACH, Calif., April 19, 2022 (GLOBE NEWSWIRE) — Pelorus Equity Group (“Pelorus” or “the Company”), the leading provider of value-add bridge commercial real estate loans to cannabis businesses and owners with cannabis-related real estate, is pleased to announce it has provided US$11M of non-dilutive real estate debt financing at an interest rate of 10.5%, to Inkster Pine Park (“Inkster”), to fund working capital and support future growth. Inkster was previously the recipient of a US$9.3M construction loan at an interest rate of 15.75%, used to fund the build-out of its new state-of-the art 72,000 square foot cultivation and processing facility. Upon completion of construction, Inkster successfully completed the underwriting process to enter the stabilized lending program which provides lower cost of capital.
“We are thrilled to work with the Inkster team and proud of all they have accomplished in the past few years,” said Dan Leimel, CEO of Pelorus Equity Group, and manager of the Pelorus Fund. “Following the successful construction of their new facility they became our third portfolio company to qualify and complete the rigorous underwriting process required for our stabilized lending program. This is a highly selective program, and we are very excited to support Inkster, the largest black-owned cannabis cultivator and processor in Michigan. We believe in the high-quality products they deliver and look forward to strengthening our relationship with them as they further scale their operations.”
“Working with the team at Pelorus has been instrumental in the development of our state-of-the-art facility,” said Michael Carr, Managing Member of Inkster Pine Park. “Dan and his entire team are outstanding, and their structured approach to lending solutions makes working with them incredibly advantageous to those looking to compete in the industry. We are thrilled to continue our partnership with them in the stabilized lending program for our next phase of growth. This new funding will allow us to accelerate our investments in equipment to increase our throughput and enter our next stage of growth with our retail development program.”
About Inkster Pine Park
Inkster Pine Park specializes in organically growing and processing exceptional cannabis flower and edibles for Michigan’s medical and recreational markets. Our 72,000 square foot facility has 52,000 square feet of hybrid greenhouse space and 20,000 square feet of indoor cultivation and processing space. Our state-of-the-art facility leverages the latest in cultivation and processing technologies to ensure the highest quality product possible for consumers. Operating under the brand’s Canna Pure and Everpure, our goal is to exceed consumer expectations on the relief and experience cannabis can provide. Our team has the expertise needed to accomplish this goal while also being community and environmentally focused. Inkster Pine Park is the epitome of social equity for the cannabis industry as Michigan’s largest black-owned cultivator and processor.
About Pelorus Equity Group
Pelorus Equity Group (“Pelorus”), the leading provider of value-add bridge commercial real estate loans to cannabis businesses and owners with cannabis-related real estate, and its Pelorus Fund, a private mortgage real estate investment trust (“mREIT”), are changing the commercial real estate lending landscape in the cannabis sector.
Pelorus Fund offers a range of innovative transactional solutions to address the diverse needs of real estate investors and portfolio managers, and its flexible acquisition and bridge lending programs are the direct result of the firm’s involvement in more than 5,000 transactions of varying size and complexity.
Since 1991, Pelorus’ principals quickly understand an opportunity, structure a logical solution and execute a timely close and have participated in more than $5B of real estate investment transactions using both debt and equity solutions. To date, Pelorus has completed 63 commercial real-estate loan transactions and deployed more than $350 million to cannabis businesses and real estate owners, comprising more than 3,200,000 sq. ft. in eight states across the U.S.
With the ability to fund approved construction draws for reimbursement in an average of one to three days and a single agreement covering the financing of the entire project, the Pelorus Fund helps to stabilize cash flow for its clients, so they are able to remain focused on their core business goals and objectives.
For more information, visit https://pelorusequitygroup.com/.