AFC Gamma's Stock Slightly Down After Announcing $30M Expansion Of Nature's Medicines Credit Facility

Cannabis-focused mortgage real estate finance enterprise AFC Gamma, Inc. AFCG said Monday it has bolstered $62.5 million in funding for Devi Holdings Inc., which is doing business as Nature’s Medicines.

Based in West Palm Beach, Florida, the company has expanded its senior credit facility by $30 million to Nature’s Medicines, which operates in several states.

The company has committed an additional $20 million under the expansion to the credit facility, and $10 million of the expansion was syndicated to an affiliate.

The credit facility is designed to provide Nature’s Medicines with additional capital to finalize the strategic acquisitions as well as expand its existing business operations.

Jigar Patel, CEO of Nature’s Medicines, said that AFC Gamma has been providing “critical support as we streamlined our capital structure and pursued our growth initiatives” since May of 2020.

“Today’s announcement is a continuation of our longstanding partnership with Nature’s Medicine, a leading multi-state operator that has experienced growth across numerous markets,” Leonard M. Tannenbaum, the company’s CEO, said. “With favorable supply and demand fundamentals across its operating and targeted markets, we believe Nature’s Medicines is poised for additional growth and that our continued partnership will help it achieve its strategic objectives and realize those significant opportunities.”

AFC Gamma became the second cannabis-focused REIT to go public on the Nasdaq earlier this year. After announcing a $56.4 million raise through its underwritten public offering of 2.75 million shares of its common stock at $20.50 per share in June, the company loaned some $23 million to BeLeaf Medical, LLC, a single-state Missouri operator.

Price Action: AFC Gamma’s shares traded 0.33% lower at $20.89 per share at the time of writing Monday morning.

Photo: Courtesy of Michael Longmire on Unsplash