Cannabis REIT AFC Gamma To Debut On Nasdaq, Prices $118M IPO

Cannabis-focused commercial real estate finance company AFC Gamma Inc. AFCG is poised to go public.

The West Palm Beach, Florida-based company is offering some 6.25 million shares of its common stock at $19 per share. It expects to debut March 19 on the Nasdaq Global Market under the ticker symbol "AFCG."

Underwriters have a month to buy up to an additional 937,500 shares of common stock at the set price.

Related Link: How to Buy AFC Gamma Inc. (AFCG) IPO Stock

AFC Gamma said it plans to use gross proceeds of roughly $118.8 million to repay debts, fund loans, and participate in additional commercial loans as well as for working capital and other general corporate purposes.

The company anticipates closing the offering on or about March 23, or once all customary closing conditions are satisfied.

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

Previous Financing Deals

In August, the company raised $80 million in equity from over twenty large family offices, bringing it to a roughly $120 million credit line.

At the time, AFC has been funding five cannabis businesses with $50 million via debt financing and committing approximately an additional $30 million to current borrowers and two new loan originations.

In December, it confirmed sales of $12.3 million in equity and $125,000 in Series A Cumulative Non-Voting Preferred Stock.

Upon closing the current offering, AFC Gamma will become the second cannabis-focused REIT to trade on a big exchange alongside Innovative Industrial Properties IIPR.

The San Diego cannabis REIT recently opted to buy a cannabis cultivation site in Illinois for $6.5 million, securing an additional $45 million in financing to complete the facility's construction under the sale-leaseback deal with 4Front Ventures Corp. FFNT FFNTF.