AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC”) today announced it has provided a credit facility of $19.75 million to DMA Holdings MA, LLC (“DMA”), a single-state Massachusetts operator. The credit facility is designed to provide DMA with the capital necessary to purchase and expand its Tier 6 cultivation license, as well as complete the buildout of its processing facility and dispensary in Dudley, Massachusetts.
“We are pleased to support DMA as it enters the Massachusetts market, where cannabis for both medicinal and recreational use has been legal since 2016,” said Leonard M. Tannenbaum, AFC’s Chief Executive Officer. “With a track record of operating success in Colorado, the DMA team has both the operational and financial expertise to thrive in a competitive market.”
Joe Villatico, CEO, Rhett Jordan, COO and David Lahar, CFO of DMA, added, “With AFC Gamma’s continued support and partnership, and our industry-leading experience, we believe DMA is ideally positioned to buildout our presence and realize the significant opportunities that exist in Massachusetts. AFC Gamma’s investment expertise, professionalism and ability to bring quality execution to the cannabis space is unparalleled, and we look forward to continuing to work with AFC Gamma in achieving our growth objectives well into the future.”
AFC will hold the entire $19.75 million credit facility, which consists of a first-lien term loan. The loan is secured by first-lien mortgages on DMA’s wholly owned real estate properties in Massachusetts and other commercial-security interests. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction.
Peter Cabrera of B6 Real Estate Advisors arranged the financing on behalf of DMA.
Massachusetts Cannabis Snapshot
Massachusetts legalized the use of medical cannabis in 2012, with sales launching in 2015. Adult use cannabis was legalized in 2016, with sales commencing in 2018. Actual adult-use sales through August 12, 2021 have totaled $755 million, which already exceeds 2020 adult-use sales of $696 million. For 2021, total adult-use sales are expected to grow to $1.4 billion and reach as much as $2.6 billion by 2025.1
