AFC Gamma Seals $41 Million Credit Facility for Growth

AFC Gamma's Recent $41 Million Credit Facility

AFC Gamma, Inc. (NASDAQ: AFCG), headquartered in West Palm Beach, Florida, has taken a significant step in financing the cannabis industry. The company recently announced its commitment and funding of a substantial $41 million senior secured credit facility to Story of Maryland, LLC. This move is a bold statement of intent to support the growth of a prominent player in the cannabis sector.

Support for Story of Maryland

Story of Maryland, a vertically integrated operator, aims to utilize these funds to refinance existing debts while also gaining critical working capital. This comprehensive financing strategy is designed to bolster their financial health and expand operations across the state. Daniel Neville, CEO of AFC Gamma, expressed enthusiasm about surpassing their goal for new originations in 2024, particularly with this $41 million transaction.

CEO Insights

In addressing this project, Neville stated, "One of my top priorities since joining AFC has been to reinvigorate our origination engine. I’m thrilled to announce that we have exceeded the $100 million goal in new originations this year." This reflects AFC Gamma’s strategy of aligning with businesses capable of rapid growth and operational efficiency in the cannabis market.

Strengthening Financial Foundations

Jason Vedadi, CEO of Story Cannabis, remarked that this financing will strengthen their balance sheet, enabling the company to pursue additional growth initiatives. Story’s commitment to quality service in its operations will be better supported by these funds, helping them enhance the experience for their patrons. The partnership with AFC Gamma comes at a time when the cannabis industry is witnessing substantial growth and evolving market dynamics.

What Lies Ahead

The credit facility from AFC is structured as a first-lien term loan, secured by real property, alongside the value associated with cannabis licenses and operations. This structured approach not only mitigates risk for AFC Gamma but also provides Story MD with a solid financial footing to pursue its ambitions.

About AFC Gamma

AFC Gamma, Inc. stands out as a leading commercial mortgage REIT specializing in loans for cannabis operators compliant with state laws in the U.S. With an adept management team equipped with extensive networks and expertise, AFC provides loans from $10 million to over $100 million, securing them against real estate and operational cash flows. Their commitment to the cannabis industry positions them as a vital player in its evolution.

Frequently Asked Questions

What is the purpose of the $41 million credit facility?

The credit facility is aimed at refinancing existing debt and providing working capital for Story of Maryland, supporting its growth initiatives.

How does AFC Gamma support the cannabis industry?

AFC Gamma provides institutional loans to state law compliant cannabis operators, helping them secure financial resources for their operational needs.

What benefits does this partnership bring to Story MD?

This partnership strengthens Story MD's financial position and facilitates further growth by improving access to additional working capital.

Who are the key executives involved in this transaction?

Key executives include Daniel Neville, CEO of AFC Gamma, and Jason Vedadi, CEO of Story Cannabis, both of whom have emphasized the importance of this capital infusion.

What is the significance of being a first-lien term loan?

A first-lien term loan provides AFC Gamma with secured priority over other debts, reducing risk and enhancing the financial stability of the transaction.

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