Pelorus Equity Lends Additional $35 Million to Harborside

Pelorus Equity Group Closes Second and Final Tranche of US$77.3M Debt Financing with Harborside

Completion of $35M Second Tranche Follows Close of StateHouse Holdings Transaction

NEWPORT BEACH, Calif., April 11, 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, announced the completion of its second and final tranche of its previously announced US$77.3M non-dilutive real estate debt financing (“the Rollup Financing”) with Harborside Inc. (“Harborside”) (CSE: HBOR) (OTCQX: HBORF). The initial funding included three individual loans to Harborside, Urbn Leaf Holdings Inc. (“Urbn Leaf”) and Loudpack JV Corporation (“Loudpack”) with a second tranche made available upon final closing of the three-way merger. The proceeds were used primarily to retire certain existing loans and provide additional working capital.

At such a pivotal time in the cannabis market’s evolution, we are proud to bring our strategic partners customized lending solutions to meet their goals.

Dan Leimel, CEO of Pelorus Equity Group and Manager of the Pelorus Fund

We were incredibly pleased to complete this funding with Harborside, Urbn Leaf and Loudpack to support their initiatives to transform the California market landscape, and we look forward to a strong partnership with them as they grow.

Mr. Leimel added, “Our ability to structure funding solutions on complex transactions sets Pelorus apart in the cannabis lending sector. As the industry grows and more of the top cannabis players are in need of funding to support their M&A and expansion plans, we are ready to bring our asset-based lending solutions to those looking to quickly scale their operations in some of the world’s most exciting cannabis markets.”

Pelorus has been a tremendous financial partner as we worked to reach this important milestone. Their ability to provide access to customized financing, as well as considerable sector knowledge and a deep network of experts is unparalleled.

Ed Schmults, CEO and a director of Harborside

Their solutions proved to us why so many of the top players in the industry are turning to them for cannabis finance solutions.

The second tranche of the Rollup Financing was funded upon completion of the StateHouse Holdings Transaction. Harborside previously announced completion of its acquisition of LPF JV Corporation (“Loudpack”), a leading manufacturer, cultivator and distributor of award-winning cannabis brands in California. The acquisition of Loudpack follows Harborside’s acquisition of UL Holdings Inc. (“Urbn Leaf”) completed on March 1, 2022 and Harborside’s acquisition of Sublimation Inc. (“Sublime”) completed on July 2, 2021. Following completion of the acquisitions, the Company plans to be renamed StateHouse Holdings Inc. (“StateHouse”).

The Rollup Financing contains a nominal interest rate of 10.25%, along with specified origination, closing and other transaction fees, and will be secured by certain real estate assets and cannabis licenses of Harborside, Urbn Leaf and Loudpack. The Rollup Financing is subject to debt-service ratio requirements, interest reserves, certain cross-corporate guarantees and defaults, subordination agreements and intercreditor agreements, along with a general corporate guarantee from Harborside.

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/.

Original press release

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