AFC Gamma Provides a New Senior Secured Credit Facility to Private Company Q and Expands Existing Senior Secured Credit Facilities for BeLeaf Medical and Sunburn Cannabis
AFC Gamma (Nasdaq: AFCG) has announced significant financial moves in the cannabis industry:
1. A new $11 million senior secured credit facility for Private Company Q in Georgia, with $4.3 million funded at closing, to support cultivation, processing, and dispensary expansion.
2. An additional $5.5 million commitment to BeLeaf Medical in Missouri, expanding their credit facility to $26.1 million for acquiring two dispensaries.
3. A $1.8 million expansion of Sunburn Cannabis' credit facility in Florida, bringing it to $36.5 million for new dispensaries and cultivation capacity.
These transactions demonstrate AFC Gamma's strategy of deploying capital in restricted license states with favorable supply-demand dynamics, reinforcing its position as a leading commercial mortgage REIT in the cannabis sector.
AFC Gamma (Nasdaq: AFCG) ha annunciato importanti operazioni finanziarie nel settore della cannabis:
1. Una nuova linea di credito senior garantita di 11 milioni di dollari per la Private Company Q in Georgia, con 4,3 milioni di dollari finanziati al momento della chiusura, per supportare l'espansione della coltivazione, della lavorazione e dei dispensari.
2. Un impegno aggiuntivo di 5,5 milioni di dollari a BeLeaf Medical nel Missouri, che porta la loro linea di credito a 26,1 milioni di dollari per l'acquisto di due dispensari.
3. Un'espansione di 1,8 milioni di dollari della linea di credito di Sunburn Cannabis in Florida, portando a 36,5 milioni di dollari per nuovi dispensari e capacità di coltivazione.
Queste transazioni dimostrano la strategia di AFC Gamma di impiegare capitale in stati con licenze restrittive e dinamiche favorevoli di domanda e offerta, consolidando la sua posizione come principale REIT ipotecario commerciale nel settore della cannabis.
AFC Gamma (Nasdaq: AFCG) ha anunciado importantes movimientos financieros en la industria del cannabis:
1. Una nueva línea de crédito garantizada senior de 11 millones de dólares para la Empresa Privada Q en Georgia, con 4,3 millones de dólares financiados al cierre, para apoyar la expansión de cultivo, procesamiento y dispensarios.
2. Un compromiso adicional de 5,5 millones de dólares a BeLeaf Medical en Missouri, expandiendo su línea de crédito a 26,1 millones de dólares para adquirir dos dispensarios.
3. Una expansión de 1,8 millones de dólares de la línea de crédito de Sunburn Cannabis en Florida, llevándola a 36,5 millones de dólares para nuevos dispensarios y capacidad de cultivo.
Estas transacciones demuestran la estrategia de AFC Gamma de desplegar capital en estados con licencias restringidas y dinámicas de oferta y demanda favorables, reforzando su posición como un REIT hipotecario comercial líder en el sector del cannabis.
AFC Gamma (Nasdaq: AFCG)는 대마초 산업에서 중요한 재정 거래를 발표했습니다:
1. 조지아에 있는 민간 회사 Q를 위한 새로운 1,100만 달러의 선순위 담보 대출 시설로, 클로징 시 430만 달러가 자금 지원되며, 재배, 가공 및 약국 확장을 지원합니다.
2. 미주리의 BeLeaf Medical에 550만 달러를 추가로 약속하여, 두 개의 약국을 인수하기 위해 그들의 대출 시설을 2,610만 달러로 확장합니다.
3. 플로리다의 Sunburn Cannabis의 대출 시설을 180만 달러 확장하여, 새로운 약국과 재배 용량을 위해 3,650만 달러로 증가시킵니다.
이러한 거래는 AFC Gamma가 제한된 라이센스 주에서 수요와 공급의 유리한 역학을 바탕으로 자본을 배치하려는 전략을 보여주며, 대마초 부문에서 선도적인 상업용 주택담보대출 REIT으로서의 입지를 강화합니다.
AFC Gamma (Nasdaq: AFCG) a annoncé d'importantes opérations financières dans l'industrie du cannabis :
1. Une nouvelle ligne de crédit senior garantie de 11 millions de dollars pour la société privée Q en Géorgie, avec 4,3 millions de dollars financés à la clôture, pour soutenir l'expansion de la culture, du traitement et des dispensaires.
2. Un engagement supplémentaire de 5,5 millions de dollars envers BeLeaf Medical dans le Missouri, augmentant leur ligne de crédit à 26,1 millions de dollars pour acquérir deux dispensaires.
3. Une extension de 1,8 million de dollars de la ligne de crédit de Sunburn Cannabis en Floride, portant celle-ci à 36,5 millions de dollars pour de nouveaux dispensaires et des capacités de culture.
Ces transactions démontrent la stratégie d'AFC Gamma de déployer du capital dans des États à licences restrictives avec des dynamiques d'offre et de demande favorables, renforçant ainsi sa position de leader en tant que REIT hypothécaire commercial dans le secteur du cannabis.
AFC Gamma (Nasdaq: AFCG) hat bedeutende finanzielle Schritte in der Cannabisbranche angekündigt:
1. Eine neue gesicherte Kreditlinie in Höhe von 11 Millionen Dollar für die Private Company Q in Georgia, wobei bei Abschluss 4,3 Millionen Dollar bereitgestellt werden, um die Anbau-, Verarbeitungs- und Apothekenerweiterung zu unterstützen.
2. Ein zusätzliches Engagement von 5,5 Millionen Dollar für BeLeaf Medical in Missouri, das ihre Kreditlinie auf 26,1 Millionen Dollar erweitert, um zwei Apotheken zu erwerben.
3. Eine Erweiterung der Kreditlinie von Sunburn Cannabis in Florida um 1,8 Millionen Dollar, wodurch diese auf 36,5 Millionen Dollar für neue Apotheken und Anbaukapazitäten steigt.
Diese Transaktionen zeigen die Strategie von AFC Gamma, Kapital in Bundesstaaten mit restriktiven Lizenzen und günstigen Angebots-Nachfrage-Dynamiken einzusetzen und die Position als führender gewerblicher Hypotheken-REIT im Cannabissektor zu stärken.
- Expansion of loan portfolio with $18.3 million in new commitments across three cannabis operators
- Diversification of investments across multiple states (Georgia, Missouri, Florida)
- Support for borrowers' growth in restricted license states with attractive market dynamics
- Maintenance of first-lien positions on all assets of borrowers, ensuring strong security for loans
- None.
Insights
AFC Gamma's recent credit facility expansions and new loan demonstrate its strategic growth in the cannabis lending sector. The $11 million facility for Private Company Q in Georgia, along with the $7.3 million in additional commitments to existing borrowers, shows AFC's focus on restricted-license states with favorable market dynamics. This approach could potentially yield higher returns due to competition.
The company's ability to provide flexible financing solutions positions it well in the evolving cannabis market. However, investors should note that while these loans may offer attractive yields, they also carry inherent risks associated with the cannabis industry's regulatory environment and operational challenges. The first-lien security on borrowers' assets provides some risk mitigation, but thorough due diligence on borrowers' financials and market positions remains crucial.
AFC Gamma's latest moves reflect the growing momentum in state-level cannabis markets. The expansion into Georgia's medical cannabis sector through Private Company Q is particularly noteworthy, as it's a relatively untapped market with significant growth potential. The additional investments in Missouri (BeLeaf) and Florida (Sunburn) underscore the company's strategy of deepening its presence in established markets.
These transactions highlight a trend of increased vertical integration and retail expansion among cannabis operators, likely driven by efforts to capture more value across the supply chain. For investors, this signals potential for improved margins and market share for well-capitalized operators. However, it's important to monitor how these expansions translate into actual revenue growth and profitability, especially given the challenges of scaling operations in a fragmented regulatory landscape.
- Closed
$11 million Senior Secured Credit Facility to Fund Expansion of New Borrower in Georgia - Committed
$7.3 million in Supporting Continued Growth of Two Existing Borrowers
WEST PALM BEACH, Fla., Aug. 19, 2024 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (Nasdaq:AFCG) (“Advanced Flower Capital” or “AFC”) today announced it has closed a new senior secured credit facility for Private Company Q and expanded its existing senior secured credit facilities for BeLeaf Medical, LLC (“BeLeaf”) and Sunburn Cannabis (“Sunburn”) . These transactions underscore Advanced Flower Capital's commitment to supporting the growth of its borrowers by providing timely, flexible and tailored financing solutions.
Private Company Q:
AFC has committed
BeLeaf:
AFC has committed an additional
Sunburn:
AFC has committed an additional
“At AFC, we are dedicated to fostering strong, lasting relationships by working together with our borrowers as they grow their businesses. We are excited to initiate a new relationship with Private Company Q, helping them establish a strong foothold in Georgia. Additionally, we are pleased to strengthen our support for BeLeaf and Sunburn, providing additional capital as they expand their operations in key markets. These investments align with our strategy to deploy capital in restricted license states with attractive supply-demand dynamics,” said Daniel Neville, AFC’s Chief Executive Officer.
AFC will hold the entire credit facility for BeLeaf, Sunburn, and Private Company Q, each of which consists of a first-lien term loan secured by all assets of the respective borrower. AFC Agent LLC served as agent for these transactions.
About AFC Gamma, Inc.
AFC Gamma, 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 and underwrites loans ranging from
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, operating results and borrower activity. 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:
Robyn Tannenbaum
(561) 510-2293
ir@afcgamma.com
advancedflowercapital.com
Media Contact:
Profile Advisors
Rich Myers and Rachel Goun
(347) 343-2999
afcgamma@profileadvisors.com
FAQ
What is the total value of AFC Gamma's new and expanded credit facilities announced on August 19, 2024?
How much did AFC Gamma (AFCG) fund at closing for Private Company Q's credit facility?
What is the purpose of the credit facility provided to Private Company Q by AFC Gamma (AFCG)?
How much has AFC Gamma (AFCG) expanded BeLeaf Medical's credit facility to in total?
