Harborside closes $77.3 million debt financing with Pelorus

Chicago, April 11 – Harborside Inc. closed on the second and final tranche of debt financing from Pelorus Equity Group for $77.5 million, according to a press release.

The non-dilutive real estate debt financing will be used to retire certain existing loans and provide additional working capital.

The initial funding included three individual loans to Harborside, Urban Leaf Holdings Inc. and Loudpack JV Corp., with the second tranche available after a three-way merger closed.

The roll-up financing will have a nominal interest rate of 10.25% and will be secured by certain real estate assets and cannabis licenses of three entities.

The 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.

The company plans to be renamed StateHouse Holdings Inc.

Pelorus provides value-add bridge commercial real estate loans to cannabis businesses and owners with cannabis-related real estate.

Harborside Group is a California-focused cannabis company with retail, production and cultivation operations.

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