Advanced Flower Capital Secures Credit Facility for Growth Plans
Revolutionizing Financing in the Cannabis Industry
In an exciting development for Advanced Flower Capital Inc. (NASDAQ: AFCG), the company has successfully renewed its senior secured revolving credit facility. This renewal marks a significant milestone as it comes with a lead commitment from a reputable FDIC-insured bank boasting assets exceeding $75 billion. The renewed facility empowers AFC to strategically allocate funds for fulfilling financial commitments to current borrowers while also facilitating new commercial loans to cannabis operators across the United States.
Utilization of the Credit Facility
AFCG's renewed credit facility is vital for the ongoing growth of the business. It encompasses the potential to expand borrowing capacity to $100 million, contingent upon lender participation and available borrowing base. This structure offers AFC flexibility in managing its financial strategies. The maturity date of this facility is set for nearly three years ahead, allowing ample time for the company to leverage the funds effectively.
Interest Rates and Financial Strategy
The credit facility operates with an interest rate linked to the Prime rate plus an additional 0.50%. Importantly, there is a Prime floor of 6.50%, placing AFC in a favorable position. This interest structure will help manage costs while supporting AFC's broader aim of financing its operations and nurturing its strategic investments.
Insights from Leadership
Brandon Hetzel, the Chief Financial Officer of Advanced Flower Capital, expressed enthusiasm about the renewed credit facility. He emphasized the importance of this financial partnership, stating, "We are pleased to renew our senior secured credit facility with a long-standing banking partner of this scale. This facility plays a central role in how we finance the business, and we look forward to continuing to build on this strong relationship." This sentiment highlights the company’s commitment to its growth strategy and reinforcing relationships with financial partners.
About Advanced Flower Capital Inc.
Advanced Flower Capital Inc. has established itself as a significant player within the commercial mortgage Real Estate Investment Trust (REIT) sector. The firm specializes in providing institutional loans to cannabis operators that are compliant with state regulations. Through extensive industry relationships and a wealth of expertise, AFCG facilitates loans ranging from $10 million to over $100 million. These loans are generally secured by high-quality real estate assets and cash flows, aligning with AFC's investment strategy.
Commitment to the Cannabis Market
AFCG's commitment to the cannabis sector positions it uniquely in a rapidly evolving industry. By providing essential financing solutions, the company helps cannabis operators thrive and expand. As laws around cannabis liberalization continue to evolve, AFCG stands ready to adapt its offerings to meet the changing landscape, ensuring they stay at the forefront of market demands.
Contact Information
For further inquiries or information about Advanced Flower Capital Inc., individuals can reach the Investor Relations team at 561-510-2293 or contact via email at ir@advancedflowercapital.com.
Frequently Asked Questions
What is the significance of the renewed credit facility for AFCG?
The renewed credit facility enables AFCG to finance existing loans and expand its operations in the cannabis market.
How much can AFCG potentially borrow with the new facility?
AFCG's credit facility has the ability to expand to $100 million based on lender participation and the borrowing base available.
What are the interest rate terms of the credit facility?
The interest rate is a floating rate of Prime + 0.50%, with a Prime floor of 6.50%.
What type of loans does Advanced Flower Capital provide?
AFCG provides institutional loans to state-law compliant cannabis operators, typically secured by real estate and cash flows.
Who can be contacted for more information regarding AFCG?
Inquiries can be directed to their Investor Relations at 561-510-2293 or via email at ir@advancedflowercapital.com.
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