Advanced Flower Capital Provides $14 Million Secured Credit Facility to Subsidiaries of Standard Wellness Holdings
Advanced Flower Capital (AFCG) has committed to a $14 million senior secured credit facility to subsidiaries of Standard Wellness Holdings, a multi-state cannabis operator. The facility includes $10.5 million funded at close.
Standard Wellness will use the proceeds to acquire a dispensary in Missouri, relocate a Utah dispensary, and refinance existing debt. The credit facility is secured by first liens on Standard Wellness's Utah operations and dispensaries in St. Louis, MO and Cincinnati, OH, plus a second lien on its Ohio cultivation facility. The collateral includes owned real estate and cannabis licenses in Utah and Ohio.
Advanced Flower Capital (AFCG) ha impegnato un prestito senior garantito di 14 milioni di dollari a favore delle sussidiarie di Standard Wellness Holdings, un operatore di cannabis attivo in più stati. Il prestito include 10,5 milioni di dollari finanziati al momento della chiusura.
Standard Wellness utilizzerà i proventi per acquisire un dispensario nel Missouri, trasferire un dispensario nello Utah e rifinanziare debiti esistenti. Il prestito è garantito da prime ipoteche sulle operazioni dello Utah di Standard Wellness e sui dispensari a St. Louis, MO e Cincinnati, OH, oltre a una seconda ipoteca sulla sua struttura di coltivazione in Ohio. Le garanzie includono immobili di proprietà e licenze per la cannabis nello Utah e in Ohio.
Advanced Flower Capital (AFCG) se ha comprometido a proporcionar una línea de crédito senior garantizada de 14 millones de dólares a las subsidiarias de Standard Wellness Holdings, un operador de cannabis en múltiples estados. La línea incluye 10,5 millones de dólares financiados al cierre.
Standard Wellness utilizará los fondos para adquirir un dispensario en Missouri, reubicar un dispensario en Utah y refinanciar deudas existentes. La línea de crédito está garantizada por primeras hipotecas sobre las operaciones de Standard Wellness en Utah y dispensarios en St. Louis, MO y Cincinnati, OH, además de una segunda hipoteca sobre su instalación de cultivo en Ohio. La garantía incluye bienes raíces de propiedad y licencias de cannabis en Utah y Ohio.
Advanced Flower Capital (AFCG)는 여러 주에서 활동하는 대마초 운영업체인 Standard Wellness Holdings의 자회사에 1,400만 달러 규모의 선순위 담보 신용 시설을 제공하기로 약속했습니다. 이 시설에는 1,050만 달러가 즉시 자금 지원됩니다.
Standard Wellness는 이 자금을 사용하여 미주리주에 있는 한 약국을 인수하고, 유타주에 있는 약국을 이전하며, 기존 부채를 재융자할 것입니다. 신용 시설은 Standard Wellness의 유타주 운영 및 세인트루이스(MO)와 신시내티(OH)의 약국에 대한 첫 번째 담보권으로 보장되며, 오하이오의 재배 시설에 대한 두 번째 담보권도 포함됩니다. 담보에는 유타주와 오하이오의 소유 부동산 및 대마초 라이센스가 포함됩니다.
Advanced Flower Capital (AFCG) s'est engagé à fournir une ligne de crédit senior garantie de 14 millions de dollars aux filiales de Standard Wellness Holdings, un opérateur de cannabis dans plusieurs États. La ligne comprend 10,5 millions de dollars financés à la clôture.
Standard Wellness utilisera les fonds pour acquérir un dispensaire dans le Missouri, relocaliser un dispensaire dans l'Utah et refinancer des dettes existantes. La ligne de crédit est garantie par des premiers privilèges sur les opérations de Standard Wellness dans l'Utah et les dispensaires à St. Louis, MO et Cincinnati, OH, ainsi qu'un second privilège sur son installation de culture dans l'Ohio. Les garanties comprennent des biens immobiliers détenus et des licences de cannabis dans l'Utah et l'Ohio.
Advanced Flower Capital (AFCG) hat sich verpflichtet, eine senior gesicherte Kreditfazilität in Höhe von 14 Millionen Dollar für Tochtergesellschaften von Standard Wellness Holdings, einem Betreiber von Cannabis in mehreren Bundesstaaten, bereitzustellen. Die Fazilität umfasst 10,5 Millionen Dollar, die bei Abschluss bereitgestellt werden.
Standard Wellness wird die Mittel nutzen, um eine Apotheke in Missouri zu erwerben, eine Apotheke in Utah zu verlegen und bestehende Schulden umzuschulden. Die Kreditfazilität ist durch erste Hypotheken auf die Utah-Betriebe von Standard Wellness und die Apotheken in St. Louis, MO und Cincinnati, OH gesichert, sowie durch eine zweite Hypothek auf die Anbauanlage in Ohio. Die Sicherheiten umfassen im Eigentum befindliche Immobilien und Cannabis-Lizenzen in Utah und Ohio.
- Secured $14M credit facility with $10.5M funded at close
- First-lien security on multiple operations and real estate assets
- Expansion into license states through strategic acquisitions
- Debt consolidation improving capital structure efficiency
- Second-lien position on Ohio cultivation facility indicates existing senior debt
- Multiple debt facilities requiring refinancing suggests leverage concerns
Insights
AFC's
The loan structure demonstrates sophisticated risk management through a multi-layered security approach. AFC secured first liens on Standard Wellness's Utah operations and dispensaries in St. Louis and Cincinnati, plus a second lien on their Ohio cultivation facility. The collateral package strategically combines both physical real estate and the inherent value of cannabis licenses in -license states.
For Standard Wellness, this financing accomplishes three strategic objectives: acquisition-driven expansion in Missouri, operational optimization by relocating a Utah dispensary, and financial streamlining through debt consolidation. The debt consolidation aspect suggests potential interest expense savings and simplified capital structure.
AFC's focus on " license states" is particularly noteworthy. These markets typically offer operators greater competitive protection and potentially higher margins due to restricted competition. This targeting indicates AFC's strategic approach to collateral value preservation in a volatile sector.
While specific terms weren't disclosed, secured lending to cannabis operators typically commands premium rates compared to conventional commercial lending due to federal banking restrictions. This transaction reinforces AFC's business model of providing capital to an industry with institutional banking options while managing risk through comprehensive collateral packages.
Supports Standard Wellness’s Continued Growth in Missouri, Utah and Ohio
WEST PALM BEACH, Fla., April 02, 2025 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq:AFCG) (“AFC”) today announced that it has committed to a
“Jared and the Standard Wellness team have proven to be astute capital allocators, and we are excited to support them as they continue to expand and optimize their business. As we continue to diversify our portfolio, Standard Wellness has many of the characteristics we are looking for in borrowers: a stable business in attractive limited license states, led by a battle-tested management team with a track-record of success,” said Daniel Neville, AFC’s Chief Executive Officer.
“Having closed on several debt facilities in the cannabis space, our team was extremely impressed with AFC’s working knowledge of the complexities of our industry. Their focus on meeting a tight timeframe to close and efficient approach to due diligence validated our decision to work with them and allowed us to cost effectively simplify our capital structure.” stated Jared Maloof, CEO of Standard Wellness.
AFC will hold the entire credit facility, which is secured by a first lien on all of Standard Wellness’s Utah operations and its dispensaries in St. Louis, MO and Cincinnati, OH, and a second lien on its Ohio cultivation facility. The collateral assets include owned real estate in Utah and Ohio and the value of those subsidiary’s cannabis licenses. AFC Agent LLC served as agent for this transaction.
In connection with the transaction, Gramercy Capital Group, LLC (through INTE Securities LLC) served as financial advisor to Standard Wellness.
About Advanced Flower Capital
Advanced Flower Capital Inc. (Nasdaq:AFCG) is a leading commercial mortgage REIT that provides institutional loans to state-law compliant cannabis operators in the U.S. Through the management team’s deep network and significant credit and cannabis expertise, AFC originates, structures, underwrites and manages loans ranging from
About Standard Wellness
Founded in 2017 in Ohio, Standard Wellness is a vertically integrated cannabis company operating across Ohio, Missouri, and Utah, with cultivation, processing, and dispensary licenses in Maryland. The company operates five retail locations under The Forest brand and has been a pioneer in the industry, including making the first-ever legal marijuana sale in Ohio through its dispensary The Forest Sandusky and the first ever delivery to a Utah pharmacy in February 2020.
With approximately 350 employees, Standard Wellness is dedicated to improving quality of life by providing safe and legal access to cannabis for medical and adult use.
About INTE Securities, LLC:
INTE Securities LLC is a member of FINRA (www.finra.org) / SIPC (www.sipc.org). To view INTE Securities LLC, go to www.finra.org/brokercheck
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the company’s current views and projections with respect to, among other things, market expansion and borrower activity and growth initiatives. All statements, other than historical facts, are forward-looking statements. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, risks and uncertainties discussed under the caption “Risk Factors” and elsewhere in AFC’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings, could cause actual results and performance to differ materially from those projected in these forward-looking statements.
Investor Relations Contact
Advanced Flower Capital Inc.
Robyn Tannenbaum
561-510-2293
ir@advancedflowercapital.com
Media Contact
Profile Advisors
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FAQ
What is the size of AFCG's credit facility to Standard Wellness Holdings in April 2025?
How will Standard Wellness use the AFCG credit facility proceeds?
What assets secure AFCG's credit facility to Standard Wellness?
Which states does Standard Wellness operate in according to AFCG's announcement?
