AFC Gamma, Inc. AFCG announced Tuesday that it has provided a credit facility of $23 million to BeLeaf Medical, LLC, a single-state Missouri operator.
The credit facility is designed to provide BeLeaf with the capital necessary to expand its three Missouri cultivation facilities in Lakefront, Jonesburg and Cherokee, as well as purchase the Jonesburg cultivation facility. The Company has nearly completed construction on ~25,000 square feet of canopy between its locations and plans to add an additional ~16,000 square feet.
“We are pleased to support BeLeaf as they ramp up their production capabilities in the growing Missouri market,” Leonard M. Tannenbaum, AFC’s CEO stated. “The management team possesses extensive and diverse expertise, and as one of the early entrants to this market, we believe BeLeaf is well-positioned to utilize its first-mover status to take advantage of the many opportunities in the state. We look forward to supporting BeLeaf’s continued progress as they execute on their strategic plans.”
Kevin Riggs, president of BeLeaf Medical said he and his team are pleased to have AFC Gamma's backing.
“At BeLeaf, we are steadfast in our production of high-quality flower and the development of innovative, best-in-class products resulting in remarkable growth and impressive customer loyalty. We look forward to bringing our exceptional products and brands to consumers in new markets, as this has been our highest priority every time we looked towards expansion,” Riggs added.
AFC will hold the entire $23 million credit facility, which consists of a first-lien term loan. The loan will be secured by a first-lien mortgage on BeLeaf’s Jonesburg facility, once purchased, and other commercial-security interests. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction.
Price Action
AFC Gamma’s shares were trading 3.04% lower at $2.36 per share at the time of writing Tuesday morning.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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