WEST PALM BEACH, Fla., April 29, 2021 (GLOBE NEWSWIRE) — AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC”) today announced it has provided a credit facility of $13 million to a Missouri medical cannabis operator (the “Borrower”). The credit facility is designed to provide capital to allow the Borrower to build out its cultivation and dispensary operations in the state of Missouri.
“We are excited to support and partner with this borrower as they continue to build upon their existing business by expanding into a new state. Additionally, we are pleased to enter a new state for AFC and look forward to making additional investments in the Missouri market,” said Leonard M. Tannenbaum, AFC’s Chief Executive Officer.
Jonathan Kalikow, Partner and Head of Real Estate at AFC said, “As the medical cannabis market continues to expand, AFC’s investment expertise and institutional approach provides the industry’s highest quality companies with the customized financing solutions they need to support their continued growth. We look forward to partnering with all of our borrowers to help them succeed in this flourishing environment.”
The Borrower owns and operates multiple medical cannabis businesses throughout the United States.
AFC will hold the full $13 million of the credit facility, which consists of a first-lien term loan that can be drawn upon over the course of a one-year period primarily for real estate acquisitions and construction. The loan will be secured by first-lien mortgages on the Borrower’s wholly-owned real estate properties and other commercial-security interests. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction.
Missouri legalized the use of medical marijuana in 2018, with sales launching in October 2020. Since the program launched in October, sales in Missouri have hit almost $25 million with 90,000 registered patients as of March 30, 2021. For the full year 2021, medical marijuana sales in Missouri are projected to reach $225 – 300 million1.
About AFC Gamma, Inc.
AFC Gamma, Inc. (NASDAQ:AFCG) is an institutional lender to leading cannabis companies with strong operations and cash-flow prospects, real-estate-security and other collateral, and locations in states with favorable supply/demand fundamentals and legislative environments. AFC’s platform provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans and bridge financings. The senior-management team of the company has a combined approximately 100 years of experience in investment management and disciplined credit investing across a range of economic cycles.
Forward-Looking Statements
This 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, future events and financial performance. All statements other than historical facts, including, without limitation, statements regarding the Borrower’s intended buildout and the projected sales of medical marijuana in Missouri 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, including the borrower failing to complete the construction described above, an unfavorable change in the regulations of the cannabis industry and other important risks and uncertainties discussed under the caption “Risk Factors” in our final prospectus filed with the U.S. Securities Exchange Commission on March 19, 2021, relating to the company’s Registration Statement on Form S-11, as amended (File No. 333-251762), could cause actual results and performance to differ materially from those projected in these forward-looking statements. New risks and uncertainties arise over time, and it is not possible for the company to predict those events or how they may affect AFC Gamma, Inc. Therefore, you should not place undue reliance on these forward-looking statements. The company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
AFC GAMMA INVESTOR CONTACT:
Robyn Tannenbaum
561-510-2293
ir@advancedflowercapital.com
www.afcgamma.com
AFC GAMMA MEDIA CONTACT:
Jim Golden / Scott Bisang / Jack Kelleher
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
1 Missouri medical marijuana sales nearing $25 million mark (Marijuana Business Daily, March 30, 2021)
