MJ Biz Daily
Marijuana businesses entering New Jersey are facing a sizzling market for retail and industrial cannabis real estate ahead of the launch of recreational sales, forcing them to search aggressively for appropriate sites in limited areas and pay premiums to secure them. “There certainly is a cannabis markup, as soon as the property owner realizes that it’s going to be a potential cannabis use,” said Rob DiPisa, co-chair of the marijuana law group at Cole Schotz and a partner in the firm’s real estate practice.
The Company received commitments for a private placement of 8% Senior Secured Notes due 2026 for aggregate gross proceeds of $350.0 million. The Notes, which will be issued at 100% of face value, will be senior secured obligations of the Company and will rank pari passu with the senior secured outstanding notes of the Company maturing in 2024. The Notes will bear interest at a rate of 8% per annum, payable semi-annually in equal installments until the maturity date, unless earlier redeemed or repurchased. The Company intends to use the net proceeds of the Offering to redeem certain outstanding indebtedness of Harvest upon completion of the Company's acquisition of Harvest, and for capital expenditures and other general corporate purposes.
Cannabis producer Parallel and media industry executive Scooter Braun-backed Ceres Acquisition Corp have mutually terminated their $1.88 billion merger agreement, the blank-check company said on Thursday. While the companies did not give a reason for pulling the plug on the deal, three sources familiar with the talks told Reuters that several investors had lost confidence in Parallel’s ability to deliver on lofty financial projections it provided in February, when the merger was announced. The sources requested anonymity as the negotiations were confidential.
Pelorus Fund, a mortgage real estate investment trust, has closed a private placement of $42,250,000 aggregate principal amount of its 7% Senior Unsecured Notes due September 30, 2026. The Company intends to use the net proceeds from the offering to continue to lend to cannabis owners and operators. This will include a new stabilized lending program with three- to five-year amortizing loans to quality sponsorship, and be offered to current borrowers upon construction completion, as well as to new borrowers that meet the company’s underwriting criteria.
A bill to legalize marijuana in Pennsylvania was formally introduced on Tuesday, and sponsors emphasized that the plan is to enact a policy change the prioritizes social equity for communities most harmed by the war on drugs. “We think we have the industry standard,” bill co-sponsor and Pennsylvania House Representative Jake Wheatley said at a press conference with supporters. “You’ve heard me over and over again, year after year, talk about this important issue. For some, it’s an economic question. For others, it’s a question around access and opportunity. But the baseline of why I’ve been harping on this for as long as I have is the social and criminal justice reform aspects.”
— OLDER ARTICLE —<< Back to All Newsletters