US: New York-based cannabis company receives $5 million loan

Rainbow Realty Group has closed a senior mortgage secured by a cannabis cultivation and processing property in Hudson Valley, New York.

The Property is a partnership between Pura, a seasoned California operator, and Hepworth Farms, a 7th-generation New York based agricultural business operator. Hepworth Pura's brand portfolio includes Old Pal, Jetty Extracts, Smokiez, Miss Grass, Cookies, and many others. Hepworth Pura has partnered with Final Bell to advance its execution on high-throughput manufacturing and launch of products into the market. Their high-quality cannabis products can already be found in more than 95% of the licensed cannabis dispensaries in New York.

Kyle Shenfeld, President of Rainbow, remarked: "We are pleased to close this real estate-backed transaction on a Property that includes over 34,262 square feet of industrial space and 40 acres of farmable land with an additional 10 acres suitable for future expansion. Hepworth Pura is poised to be a market leader in New York, which is finally gaining momentum on its licensed dispensary rollout. Hepworth Pura is bringing to the NY Market a diverse brand portfolio with recognized national brands and up-and-coming NY brands."

The building was previously operated as a production and distribution facility for local agricultural products. The Hepworth family has continuously operated an agricultural enterprise on the property for over 200 years and has fully transitioned its operation at this facility to cannabis, with over $2 million invested in improvements and $3 million of secured equipment. The Hepworth family continues to operate their non-cannabis business called Hudson Valley Grown, which grows over 200 varieties of vegetables across its 500 acres of farmland in New York.

"The combination of the Hepworth family's longstanding excellence in New York agriculture and Pura's proven expertise in organic cannabis cultivation and marketing creates a future powerhouse in the nascent New York market," says Andrew Kaye, Chief Commercial Officer of Sweet Leaf Madison Capital. "We are proud to provide financing and to participate in the growth of a critical US market for compliant cannabis."