AFC Gamma Propels Capital Growth: New Senior Credit Facility Announced
The cannabis industry is already off to a promising start this week, with momentum building as capital markets continue to advance in the face of reform. AFC Gamma, Inc (Nasdaq:AFCG) announced that it has made strides by providing a new senior secured credit facility to Private Company Q and expanding existing facilities for BeLeaf Medical, LLC, and Sunburn Cannabis.
Private Company Q, a Georgia-based operator with a Class 2 cannabis license, received a $11 million commitment from AFC, with $4.3 million funded initially. This infusion will support the buildout of a cultivation and processing facility, along with the establishment of two new dispensary locations in Georgia, enabling the company to expand and better serve the medical cannabis market.
For BeLeaf, AFC committed an additional $5.5 million under the expansion of their facility, bringing the total expanded credit facility to $26.1 million. These funds will help finance the acquisition of two dispensaries in Missouri, enhancing the borrower’s vertical integration within the state.
Likewise, Sunburn received an additional $1.8 million under the expansion of their credit facility, increasing the total to $36.5 million. The additional funds will be used for the buildout of two new dispensaries and additional cultivation capacity in Florida, further solidifying the company’s presence and operations in the state.
Daniel Neville, CEO of AFC Gamma, expressed enthusiasm for supporting the growth of these companies, emphasizing the importance of fostering strong relationships and providing tailored financing solutions. The strategic investments align with AFC’s focus on deploying capital in restricted license states with promising supply-demand dynamics.
As the cannabis industry gains traction, all eyes are on Chicago this week with the DNC convention, where discussions on cannabis legalization and policy reforms could impact market sentiment and investor confidence. With many speculating the topic of cannabis reform being announced this week, along with rescheduling announcement rumoured to being fast tracked, stocks have been performing well as of late and with this morning’s announcement, could we start to see more capital inch it’s way back into the industry. building momentum over the past 2 weeks, along with capital The developments in the capital markets and AFC’s commitment to empowering cannabis businesses underscore the sector’s resilience and potential for growth in the evolving landscape of regulatory changes and market dynamics.
