AFC Gamma Provides Justice Cannabis Co. With $75.4M Via Extended Credit Facility, Announces Funding Updates

Cannabis-focused commercial real estate finance company AFC Gamma, Inc. AFCG has bolstered its senior credit facility with Justice Cannabis Co. to $75.4 million.

Based in West Palm Beach, Florida, the company expanded its senior credit facility by $53.4 million on Monday.

AFC Gamma now holds a total of $65.4 million of the expanded credit facility, with $10 million syndicated to an affiliate.

The credit facility expansion is designed to provide the Chicago-based multi-state operator with licenses in eight states with additional capital to purchase assets, develop its operations in New Jersey, further build its Pennsylvania cultivation facility and refinance existing debt.

“We are committed to the long-term success of our borrowers, and today’s announcement demonstrates AFC Gamma’s ability to support existing borrowers’ capital needs as they seek to expand their businesses and achieve new strategic objectives,” said Leonard M. Tannenbaum, AFC Gamma’s CEO.

The loan is secured by a first-lien mortgage on Justice Cannabis Co.’s owned real-estate in New Jersey and Pennsylvania and other commercial-security interests. AFC Management, LLC acted as agent for the transaction.

“AFC Gamma continues to be a great asset to Justice Cannabis Co. throughout our partnership, and we are pleased to have the opportunity to utilize their flexibility and lending capabilities to support our next chapter of growth,” Jon Loevy, co-founder of Justice Cannabis Co. said. “It is refreshing to have a capital partner that understands the dynamic nature of the cannabis industry and can anticipate and meet our capital needs.”

Funding Updates

Separately, AFC Gamma announced several business updates:

• Gross funding was $89.3 million for the quarter ended September 30, and its net financing, taking into account loan repayments and amortization, was $79.3 million.
• Closed on total new commitments of $119.2 million during the quarter ended September 30.
• For the nine months ended September 30, 2021, the company’s gross funding was $176.7 million, and its net funding, taking into account loan repayments and amortization, was $154.7 million.

• Closed on total new commitments of $214.0 million during the nine months ended September 30, 2021.

Price Action

AFC Gamma’s shares traded 1.28% lower at $21.53 per share at the time of writing Monday morning.

Photo: Courtesy of Michael Longmire on Unsplash