Cannabis-Focused Mortgage REIT Raises $56.4M Just Months After NASDAQ Debut

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Cannabis-focused commercial real estate finance company AFC Gamma, Inc. AFCG is poised to raise $56.4 million through its underwritten public offering of 2.75 million shares of its common stock at $20.50 per share.

Underwriters have a month to buy up to an additional 412,500 shares of common stock at the set price.

The West Palm Beach, Florida-based company said it intends to use the net proceeds to finance loans associated with unfunded commitments to its existing borrowers and to fund commercial loans to companies within the cannabis space as well as for working capital and other general corporate purposes.

The company expects to close the transaction on or about June 28.

Jefferies, Cowen, and JMP Securities agreed to act as joint book-running managers for the offering.

The cannabis mortgage REIT went public earlier this year by offering some 6.25 million shares of its common stock at $19 per share. The company debuted on the Nasdaq Global Market in March under the ticker symbol "AFCG."

Photo: Wikimedia Family photos of Infrogmation

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