AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma”) today announced that it has amended its previously announced $100 million credit facility with Acreage Holdings, Inc. (“Acreage”) (CSE:ACRG.A.U, ACRG.B.U), (OTCQX: ACRHF, ACRDF), a vertically integrated, multi-state operator of cannabis cultivation and retailing facilities in the U.S. (the “Amended Credit Facility”).
Under the terms of the Amended Credit Facility, an additional $25 million is now available for immediate draw by Acreage, with a further $25 million available in future periods under a committed accordion option upon achieving certain predetermined milestones. The terms of these additional draws replace the prior $50 million accordion option. The Amended Credit Facility now includes a variable interest rate equal to U.S. prime (“Prime”) plus 5.75 % per annum, payable monthly in arrears, with a Prime floor of 5.50%. Acreage intends to use the proceeds to fund expansion initiatives and provide additional working capital.
“AFC Gamma is committed to providing the capital necessary to support our portfolio companies’ expansion in key states to drive further growth,” said Leonard Tannenbaum, Chief Executive Officer of AFC Gamma. “Acreage has proven itself as a strong, capable operator that is well-suited for long-term success. AFC is proud to strengthen our partnership with Acreage as we provide additional funding to achieve their growth goals as they continue to make their mark on the Northeast region.”
Steve Goertz, Chief Financial Officer of Acreage, added, “The amended terms to the credit facility align with current market conditions and will allow Acreage to strengthen our balance sheet as we scale our core footprint, particularly in the Northeast. This infusion of capital comes at an opportune time as we elevate our cultivation and wholesale abilities in New Jersey and cement our presence in the upcoming adult-use markets in Connecticut and New York. We are thrilled that AFC Gamma and Viridescent continue to show their confidence in our growth potential and remain valuable partners.”
AFC Gamma has committed to up to $90 million under the Amended Credit Facility, with an additional commitment of up to $15 million syndicated to an affiliate and the remaining $45 million committed by Viridescent Realty Trust, Inc. (“Viridescent”). The facility is secured by first-lien mortgages on Acreage’s owned real estate properties and other commercial security interests.