Organic Remedies Scores $22M In Financing From Advanced Flower Capital

Organic Remedies Inc. secured $22 million in financing through a credit facility provided by AFC Management LLC (AFC).

Organic intends to use the proceeds from AFC Gamma to fund the construction of some 240,000 square feet of cultivation and processing space.

In addition, the Pennsylvania-based vertically integrated cultivator and retailer of medical cannabis also plans to build three additional dispensaries.

The credit facility includes a first-lien term loan that could be drawn upon in one year, as per the press release.

Currently, Organic Remedies — which is founded in 2018 — operates three dispensaries.

"We are excited to partner with Organic Remedies as they leverage their agricultural expertise, to support what will be one of the largest cultivators in Pennsylvania," AFC chief executive Leonard Tannenbaum said Tuesday.

He believes that Pennsylvania is "finally being recognized by industry providers," considering there were "several recent acquisitions of cannabis operators in the state."

Mark Toigo, who helms Organic Remedies, seconded Tannenbaum, adding they are "impressed with AFC's institutional approach, cannabis-industry expertise, as well as their flexibility and speed of execution to complete a transaction."

In May, AFC provided Nature's Medicines with $42 million in financing. The Phoenix-based company utilized the proceeds to expand its footprint in the Arizona and Michigan markets.

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