AFC Gamma Prices Initial Public Offering

Rhea-AI Summary

AFC Gamma, a commercial real estate finance company, announced its initial public offering (IPO) of 6,250,000 shares at $19.00 each, aiming for gross proceeds of approximately $118.8 million. The shares are set to trade on Nasdaq under the ticker symbol 'AFCG' starting March 19, 2021. The offering includes a 30-day option for underwriters to purchase an additional 937,500 shares. Proceeds will fund existing loans, new commercial loans, repay outstanding borrowings, and support general corporate purposes. The offering's close is anticipated around March 23, 2021.

Positive

• Expected gross proceeds of approximately $118.8 million.
• Funds intended for existing and new loans, potentially enhancing growth.
• Company aims to qualify as a real estate investment trust.

Negative

• Potential dilution of shares if underwriters exercise their option to purchase additional shares.

WEST PALM BEACH, Fla., March 18, 2021 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (“AFC Gamma” or the “Company”), a commercial real estate finance company that provides loans to operators in the cannabis industry, today announced the pricing of its initial public offering of 6,250,000 shares of its common stock at a public offering price of $19.00 per share. In addition, AFC Gamma has granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock at the initial public offering price, less underwriting discounts and commissions. The Company’s common stock is expected to begin trading on The Nasdaq Global Market on March 19, 2021 under the ticker symbol “AFCG.”

AFC Gamma anticipates total gross proceeds of approximately $118.8 million, before deducting underwriting discounts and commissions and other offering expenses and excluding any exercise of the underwriters’ option to purchase additional shares. AFC Gamma intends to use the net proceeds from the offering to fund loans related to unfunded commitments to existing borrowers, originate and participate in additional commercial loans, repay borrowings that are outstanding under its revolving credit facility at consummation of the offering, if any, as well as for working capital and other general corporate purposes. The offering is expected to close on or about March 23, 2021, subject to the satisfaction of customary closing conditions.

JMP Securities LLC, Ladenburg Thalmann & Co., Inc. and Seaport Global Securities LLC are acting as joint book-running managers for the offering. Lake Street Capital Markets, LLC is acting as a co-manager for the offering.

A registration statement relating to the shares being sold in the offering was filed with the Securities and Exchange Commission and became effective on March 18, 2021. The offering is being made only by means of a prospectus. Copies of the final prospectus relating to the offering, when available, may be obtained from JMP Securities LLC, Attn: Prospectus Department, 600 Montgomery Street, Suite 1100, San Francisco, California 94111, by email at syndicate@jmpsecurities.com, or by telephone at 415-835-8985; Ladenburg Thalmann & Co., Inc., Attn: Syndicate Department, 640 5th Ave, 4th Floor New York, NY 10019, by email at prospectus@ladenburg.com or by telephone at 1-800-573-2541; and/or Seaport Global Securities LLC, Attn: Capital Markets, 360 Madison Avenue, 22nd Floor New York, NY 10017, by email at jmascone@seaportglobal.com, or by telephone at 212-616-7748.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About AFC Gamma

AFC Gamma is a commercial real estate finance company that provides a range of lending solutions to established operators in the cannabis industry. AFC Gamma originates, structures, underwrites and manages senior secured loans and other types of loan solutions in states that have legalized medicinal and/or adult use cannabis. The Company intends to elect and qualify to be taxed as a real estate investment trust, commencing with its taxable year ending December 31, 2020.

INVESTOR CONTACT:
Robyn Tannenbaum
561-510-2293
ir@advancedflowercapital.com

MEDIA CONTACT:
Nick Rust
Prosek Partners
(646) 818-9252
nrust@prosek.com

FAQ

What is the IPO pricing for AFC Gamma?

AFC Gamma's initial public offering is priced at $19.00 per share.

When will AFC Gamma start trading on Nasdaq?

AFC Gamma's shares are expected to begin trading on Nasdaq on March 19, 2021.

What are the expected proceeds from AFC Gamma's IPO?

The company anticipates gross proceeds of approximately $118.8 million from the IPO.

What will AFC Gamma do with the IPO proceeds?

The proceeds will be used to fund loans, repay borrowings, and for general corporate purposes.

Is there a possibility of share dilution in AFC Gamma's IPO?

Yes, there is potential dilution if underwriters exercise their option to buy additional shares.