Remy Blaire is joined by Rob Sechrist, the President of Pelorus Capital Group to discuss the firm’s strategic shift from lending in the cannabis real estate sector to launching a new billion-dollar equity growth fund aimed at ownership in the cannabis industry.
Rob explains the differences between limited and unlimited state licensing systems, emphasizing how location restrictions still apply even in states without license caps. Drawing from his extensive experience as a lender, he shares insights on how Pelorus has developed a data project to track borrower success and market trends, which informs their underwriting process.
Rob highlights the maturing cannabis market and the potential for favorable changes under the Trump administration, including the possibility of rescheduling cannabis and the implications of IRC Section 280E on taxation. He elaborates on how Pelorus approaches the decision-making process for saving companies, focusing on best practices and market trends.
They also delve into the unique challenges of restructuring cannabis businesses, particularly the absence of federal bankruptcy protections, which necessitate state receiverships. Rob shares details about a significant turnaround project involving StateHouse Holdings, a California operator, and how Pelorus identifies acquisition targets through careful monitoring and data analysis.