The Leading Provider of Value-Add Bridge Commercial Real Estate Loans in the Cannabis Sector Also Announced It Has Completed 55 Loan Transactions and Deployed $204 Million, Comprising 1,750,000 Sq. Ft. in Eight States
NEWPORT BEACH, Calif., Aug. 26, 2021 (GLOBE NEWSWIRE) — 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, announced that its Pelorus Fund, a private mortgage real estate investment trust (“mREIT”), has entered into a $19 million construction-financing loan with Item 9 Labs Corp. (OTCQX: INLB) (“Item 9 Labs” or the “Company”), a vertically integrated, cannabis dispensary franchisor and operator that produces premium, award-winning products.
The proceeds from Pelorus’ high-performance loan will be used to finance the acquisition of 44 acres of adjacent land next to Item 9 Labs’ 19,200 sq. ft. facility in Arizona (“the Arizona Facility”), which has been operational since 2017. The loan will also be used to finance the master site development. Construction of phase 1 consists of three additional steel buildings and two green houses. This initial expansion adds 9,600 sq. ft. for indoor cultivation, 9,600 sq. ft. of lab and packaging and a 9,600 sq. ft. head house to support the addition of the two 18,000 sq. ft. greenhouses. The total expansion will consist of six more buildings – one will be for expansion of the Company’s lab and support space for finished product, and the other five will be for indoor cultivation. Once complete, the Item 9 Labs site will comprise 640,000-plus sq. ft. of cannabis operations.
In Arizona, Item 9 Labs is currently cultivating and manufacturing a range of cannabis products, including 75-plus high-quality cannabis strains that are sold at 60% of Arizona’s dispensaries, along with 150 differentiated cannabis products. In Nevada, Item 9 Labs will use