US: "We secured $11.8 million in financing, enabling expansion of operations"

Juva Life Inc. has closed non-dilutive financing of $11.8 million, enabling the company to acquire its Stockton, California, facility as well as further its clinical research on its two novel compounds.

The non-dilutive financing, which was closed on June 15, 2022, was facilitated by Pelorus Equity Group, who specializes in real estate debt financing solutions. The primary purpose of the financing was to provide capital to the company to complete the acquisition of its Stockton cultivation facility, recently appraised at a value of over $17 million, for a purchase price of $4 million. Additionally, the company plans to use the funds to further its clinical research development programs on novel compounds Juva-019 and Juva-041, targeting the treatment of inflammation.

"I am extremely pleased to close this round of debt financing, especially given the recent distressed capital markets and economic conditions. I believe it is a testament to the excitement around both Juva's cannabis operations as well as our clinical research initiatives," said Doug Chloupek, CEO and Founder of Juva. "As our cannabis operations continue to grow and generate revenue, it was imperative that we secure our real estate holdings while furthering our pharmaceutical initiatives. This financing allows us to accomplish both of these goals while retaining significant equity in our Stockton real estate holding. Additionally, the financing will also provide us with the capital needed to finish construction on our downtown Redwood City retail store, which, upon completion, will create a new revenue stream for Juva. I am confident that this transaction will provide us with a strong runway and allow us to expand our revenue generating cannabis assets while also moving forward with our clinical research, a focus area that we believe holds the most potential upside for the company."

The financing is secured by the assets of Juva and its subsidiaries, including the real estate held in Stockton. It also includes the issuance of 2,500,000 warrants, each convertible into one common share of the company, exercisable at $.18 CAD per share for a period of 3 years post loan maturity. Additional terms include six months' worth of interest being held in reserve, $0.86 million being held in reserve for building out the company's Redwood City cannabis retail storefront, and $0.6 million being held for research and development projects related to the company's clinical research. Origination fees are to be paid to both the lender and "Seed to Sale Funding," who brokered the deal. The loan bears a variable interest rate of 11.5% plus SOFR (minimum of 1.5%) over the 36-month term of the financing.

For more information:
Juva Life
inquiries@juvalife.com 
www.juvalife.com  



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