AFC Gamma, Inc. AFCG announced on Monday that it has committed and funded $41 million to a senior secured credit facility a vertically integrated cannabis operator in Maryland.
The Florida-based company's move represents its second transaction with Story of Maryland, LLC.
Daniel Neville, CEO of AFC said that the company has exceeded its 2024 goal of $100 million in new originations. He called Story MD "a great example of the Cannabis 3.0 lending opportunities."
"This is a proven team that knows how to scale and operate in cannabis, and we couldn't be more excited to support their continued growth," Neville said.
Story MD plans to use the proceeds from the credit facility to refinance existing debt and provide working capital.
Read Also: AFC Gamma Inc. Q2 Earnings and Revenues Surpass Estimates
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"This financing further strengthens Story's balance sheet by providing additional working capital and allows Story to fund additional growth initiatives," Jason Vedadi, CEO of Story Cannabis said. "Story is grateful to AFC for offering this opportunity, and Story looks forward to working together given AFC's proven track record and sophistication in the industry."
AFC said that it holds the entire credit facility for Story MD. It consists of a first-lien term loan secured by the borrower’s real property and the value of its cannabis licenses and operations in Maryland.
AFC is a commercial mortgage REIT specializing in loans to state-compliant cannabis operators.
Last month it announced its third-quarter dividend. The board declared a dividend of $0.33 per common share, payable on Oct. 15, 2024, to stockholders of record as of Sept. 30, 2024. The announcement marked AFC Gamma's first dividend post-spin-off.
Read Next:
- Making Money In Weed: Three Cannabis Operators Get Millions To Expand In Florida, Missouri & Georgia
AFCG Price Action
AFC Gamma's shares traded 0.51% higher at $9.91 per share at the time of writing on Monday.
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