Baja Boom or Risky Bet? ILAL Secures $50M for Mexican Development Amid Financial Concerns

NEW YORK, NY – November 21, 2025

International Land Alliance, Inc. (OTCQB: ILAL) has secured up to $50 million in financing from Mast Hill Fund L.P., a move intended to fuel expansion of its Rancho Costa Verde development in San Felipe, Baja California, Mexico. While the company touts this as a significant step towards realizing its vision of a thriving off-grid community, a deeper look reveals a complex financial picture and growing concerns about the developer’s ability to navigate a challenging economic climate.

Funding a Vision – and a Potential Turnaround?

The $50 million facility, structured as a convertible promissory note, will fund the acquisition of 300 adjacent acres, bolstering Rancho Costa Verde with an additional 300 residential homesites, 12 casitas, and two beachfront homes. ILAL anticipates this expansion will generate over $12 million in land sales and a substantial $90 million in construction revenue. The agreement also includes a service component, with ILAL providing real estate services to Mast Hill, creating a potentially predictable revenue stream. However, the timing of this investment is critical. ILAL’s recent financial performance paints a starkly different picture than the optimistic projections accompanying the announcement.

For the nine months ending September 30, 2025, the company reported a dramatic downturn, with net revenues falling to $1.88 million from $7.13 million the prior year. This translated into a net loss of $5.13 million, a significant swing from the $3.49 million profit reported in 2024. Management has expressed “substantial doubt” about the company’s ability to continue as a going concern, acknowledging the reliance on continued financing and potential dilution for existing shareholders.

“The company is at a pivotal moment,” says one financial analyst, speaking on background. “This funding provides a lifeline, but it’s a complex structure with significant potential risks. The conversion terms and warrant issuance could dramatically alter the shareholder landscape.”

Rancho Costa Verde: A Growing Community – and a Competitive Landscape

Rancho Costa Verde is positioned as an off-grid, sustainable community focused on attracting retirees, vacation homeowners, and investors. With over 1,000 residential lots sold and over 100 homes completed, the development appears to be gaining traction. Its location along the Sea of Cortez and emphasis on solar power and individual wastewater treatment systems offer unique appeal. However, it’s not operating in a vacuum.

The San Felipe real estate market is becoming increasingly competitive. Established players like El Dorado Ranch offer a similar lifestyle with a longer track record and established amenities. New developments, like Marinazul Golf Resort, are also vying for market share. ILAL will need to effectively differentiate Rancho Costa Verde and demonstrate sustained growth to maintain its competitive edge.

“The Baja market is hot right now,” notes a local real estate agent, speaking anonymously. “But it's also becoming crowded. Buyers have options, and they’re looking for value, security, and a proven track record.”

The Fine Print: Analyzing the Financing Structure

The terms of the financing agreement with Mast Hill Fund L.P. raise several questions. The convertible promissory note allows Mast Hill to convert the debt into common stock at a discount, and the accompanying warrant issuance grants the fund the right to purchase a significant number of shares at a minimal exercise price. This could lead to substantial dilution for existing shareholders.

Furthermore, the complex financial structure and the reliance on variable-rate convertible notes introduce additional financial risks. “The company is essentially betting on its ability to execute its development plan and generate sufficient revenue to repay the debt or convert it into equity,” explains one financial expert. “If things don’t go as planned, the consequences could be severe.”

The company is currently working towards an uplisting to the NASDAQ, which would require meeting stricter financial and corporate governance standards. While this could enhance investor confidence, it also adds to the pressure on management to deliver positive results.

ILAL has 3 employees as of November 20, 2025, indicating a lean operational structure. This could allow for agility and cost control, but it also raises concerns about the company’s capacity to manage a large-scale development project and navigate a challenging economic climate.