Juva Life Inc has closed a financing round of $11.8 million, enabling the company to acquire its facility in California and further its clinical research on two novel compounds.
Juva Life, a life science company with pharmaceutical R&D and consumer-facing operations in cannabis production and distribution, has raised $11.8 million in a recent funding round as it seeks to expand its clinical research into cannabis-based products.
The non-dilutive financing was facilitated by Pelorus Equity Group, which specialises 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, California cultivation facility, recently appraised at a value of over $17 million, for a purchase price of $4 million.
The company also 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 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.”
The financing is secured by the assets of Juva Life 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 the build-out of Juva’s Redwood City cannabis retail storefront and $0.6 million being held for research and development projects related to the company’s clinical research.
“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,” Chloupek said.
“We’re thrilled to fund Juva to acquire its Stockton, California, facility,” Dan Leimel, Pelorus Equity Group CEO added. “In addition to advancing Juva’s research on its two compounds, this compelling transaction will support Juva’s development of products derived from cannabis that offer evidence-based therapeutics for the treatment of many challenging health conditions.
“As we continue to expand our assets under management, we look forward to continuing to provide leaders in the cannabis ecosystem with flexible capital markets solutions that meet the complex deal structures of large, mid-sized and small operators.”