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Rainbow Realty Group Quarterly Newsletter Q2Y24

May 1, 2024

We are writing to share some exciting news on Rainbow Realty Group and the U.S. cannabis industry. These newsletters will be published once quarterly as Rainbow continues to cement its place as the industry’s leading real estate investment company.

Firm Highlights:

• Rainbow launched its fourth vehicle, Rainbow Realty Group IV LLC, in January and has raised $22,000,000+ to date with plans to continue raising through Q3 2024
  
• Rainbow Realty Group IV had its first closing last week: a $6.5M loan on a property in Hudson Valley, NY. Rainbow projects to earn an unlevered IRR of 22.40%: Read More
  
• Rainbow Realty Group II LLC had its first loan payoff on a mortgage it had originated in 2022. The property was sold in March 2024, netting Rainbow an unlevered deal IRR of 52.16%
  
• The team officially moved into its new headquarters in New York, located in the Graybar Building (420 Lexington Ave, NY, NY 10170), right on top of Grand Central
  
• Rainbow and The Real Deal partnered on a piece that was launched last month that highlights Rainbow’s investment thesis and delves into what has led us to uninterrupted quarterly distributions since inception and what has made us successful over the last 5 years; check it out here: RRG X TRD Article
  

Industry Update:

• In groundbreaking news, yesterday the DEA announced that it will be moving forward with its proposal to reschedule Cannabis from a Schedule I drug to a Schedule III drug. Rescheduling would have a very positive impact on the creditworthiness of Rainbow’s counterparties. Read More
  
• While it is great news the DEA will be moving forward with rescheduling, their proposal must still be reviewed by the White House Office of Management and Budget. Read More
  
• SAFER banking seems unlikely. Accordingly, Rainbow does not expect banks or U.S. institutions to start lending to cannabis companies. Here is a legal breakdown of SAFER banking: Read More
  
• Ohio officially changes from a medical cannabis state to allow recreational use for adults 21+: Read More
  
• 74% of Americans live in a state where marijuana is legal for either recreational or medical use: Read More
  
• Vice President Harris continues to support legislative change for Marijuana, “Nobody should have to go to jail for smoking weed.”: Read More
  
• $MSOS, a Cannabis-focused ETF, is up 42% since January 1st: Read More
  
• The state of Florida will have legalization of recreational cannabis use on the ballot in November: Read More
  

If you have any questions about Rainbow or the industry in general, please reach out to jack@rainbowrg.com, and I'll be happy to find time to chat!

© 2023 RAINBOW RG. ALL RIGHTS RESERVED