Lucky's LeafsOne senior secured facility, first lien on entitled cannabis land, sized to carry itself to first harvest.
Acquisition and Year-0 site development of a ~17-acre entitled outdoor-cultivation parcel at 2100 Belvidere Road, Harmony Township, Warren County, NJ — under a letter of intent countersigned by the seller on August 10, 2026 at $2,495,000. Structured the way a cannabis real-estate bridge is written: interest-only, full interest reserve funded at close, repaid from the first harvest with a land-secured backstop.
Sized to your structure, not ours.
The plan itself is $3.1M. We have built the request the way we expect your term sheet to read: proceeds fund acquisition, site development and soft costs, plus origination and an interest reserve covering every payment through maturity, so no debt service depends on operations before harvest receipts. Pricing below is illustrative; your terms govern.
Sizing formula: net proceeds ÷ (1 − points − rate/12 × months). If your reserve convention or pricing differs, the facility resizes mechanically — the plan underneath does not change.
80% of net proceeds is the land. No expansion capex and no operating reserve are carried on borrowed money — greenhouse and indoor phases are funded from harvests, outside this facility.
Real property first; the operating assets behind it.
The land is the backstop, not the thesis: land plus Year-0 improvements covers ~two-thirds of the gross facility, and the seller has publicly marketed the parcel at the contract price as a discount to a recent sales comparable, so appraisal is expected to be supportive of value above cost. The primary exit is the harvest.
Close, license, plant, harvest, sell, repay — inside the term.
| Milestone | Window | What happens |
|---|---|---|
| Term sheet → PSA → close | Months 0–2 | Deposit posts 3 business days after PSA; 28-day diligence (Phase I, title, water/utility, entitlement); close within 30 days after diligence. Buyer-named municipal support resolution runs in parallel from PSA. |
| License & site build | Months 2–8 | CRC Class 1 (Tier VI wraps the field) with the prior applicant's counsel and consultants; well, irrigation, perimeter security, field prep from the $210K line. |
| Plant · harvest | ~May → ~Oct | 3.5-acre outdoor season; offtake pre-negotiated ahead of harvest (Casa Verde LOI signed; supply agreements with pricing to follow). |
| Sell & repay | Months ~14–18 | Receipts land Oct–Apr. Base case: ~$6.1M received by month 18 → ~$4.4M crop cash after grow cost and excise, ≈1.07× the facility. Principal repaid from harvest; any residual refinanced into term debt on a licensed, operating asset. |
We show this on purpose. At the U.S. outdoor index with no New Jersey premium the operation is still profitable and never needs additional capital, but the first harvest alone does not retire the facility; the exit is a refinance of a licensed, cash-flowing, land-owning company. Your position is first lien throughout.
The town has already said yes to this use on this lot. We inherit the team that got it done.
In New Jersey there is no separate municipal license: a governing-body resolution of support is the local approval the CRC requires. Harmony Township adopted that resolution for cannabis cultivation and manufacturing on this exact parcel in June 2024 (Resolution 24-24, certified copy in the data room). It names the prior applicant, so it re-adopts in our name.
The discretionary vote is known
The township committee has voted yes for this use on Block 31 Lot 7. Same parcel, zone, ordinance and use — the ask is the same decision with the applicant's name updated.
The playbook and people transfer
The prior applicant's NJ cannabis counsel, its consultants (CannDelta — full application work product delivered at PSA execution), and the township relationships that produced the first approval support Lucky's Leafs through the re-vote and CRC licensure until we hold the identical approvals.
Everyone is paid when it lands
The seller closes on $2,495,000 only when we close; the LOI ties their exclusivity to the PSA. Seller cooperation on municipal support and licensure and the CannDelta handover are covenants in the countersigned LOI (§4, §5); the full transition is being papered into the Purchase Agreement.
Residual risk, stated plainly: a township that already approved this use declining the identical use with the same team in the room. Mitigants: the buyer-named resolution is run from PSA in parallel with diligence, and closing is conditioned on it.
Acquisition, capex to date, remaining capex.
- Site control — LOI countersigned by Harmony Holdings Development LLC, Aug 10 2026
- Legal parcel — subdivision plat recorded, Warren County Map #877 (May 1 2026); County File 25-003 conditions satisfied
- Use right — Ordinance O:24-06, cultivation "on the exterior portions of a lot"
- Municipal precedent — certified Resolution 24-24 on this lot
- Water — M2 Associates hydro study, Allentown dolomite; power — JCP&L will-serve; Flood Zone X; Highlands Planning Area
- Demand — signed Casa Verde LOI · Model — live workbook, balance sheet ties $0 every year
Prepared for Pelorus Capital Group. Confidential. Illustrative facility sizing at assumed pricing for discussion only; final terms per lender term sheet. Projections are based on documented assumptions and cited market data; not a guarantee of results. Contact: Brandon Rumann, CFO · (832) 244-9139 · info@luckysleafsnj.com