Juva Life Inc. (OTC: JUVAF), a cannabis-focused pharmaceutical research, development, and consumer-centric company, has secured a dilutive financing of $11.8 million. This funding has helped the company acquire its Stockton, California facility and improve its clinical research on its two novel compounds.
This financing, secured on June 15, 2022, was supported by Pelorus Equity Group, a real estate debt financing solution. The main purpose of the dilutive financing was to provide adequate capital to complete an acquisition. The acquisition, appraised at over $17 million, is to be purchased for $4 million. Furthermore, Java plans to use the funds to improve its clinical research development projects on novel compounds, Juva-019 and Juva-041, which targets the treatment of inflammation.
Doug Chloupek, the CEO and Founder of Juva, said, "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 Juva's cannabis operations and our clinical research initiatives. As our cannabis operations continue to grow and generate revenue, we need to secure our real estate holdings while furthering our pharmaceutical initiatives. This will allow us to accomplish both of these goals, while retaining significant equity in our Stockton real estate holding…."
The financing was closed using the assets of Juva and its subsidiaries and included issuing about 2.5 million warrants. Each of the warrants is convertible into the company's share and is exercisable at $.18 CAD per share over three years post loan maturity. The financing also includes additional terms such as six months' worth of interest that will be held in reserve, $0.6 million that is also held for research and projects related to the clinical research of the company, and $0.86 million being held in reserve for the company's Redwood City cannabis retail storefront.
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