AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma”) today announced that it has, together with Viridescent Realty Trust, Inc. (“Viridescent”), provided a senior secured credit facility of $100 million to Acreage Holdings, Inc. (CSE:ACRG.A.U, ACRG.B.U) (“Acreage”), a vertically integrated, multi-state operator of cannabis cultivation and retail facilities in the U.S. Acreage intends to use proceeds from the new credit facility to repay existing debt, fund expansion initiatives and provide additional working capital.
“We are excited to support Acreage’s management team as they streamline their capital structure and execute on their refocused business plan,” said Leonard M. Tannenbaum, AFC Gamma’s Chief Executive Officer. “We believe Acreage is well positioned in high-growth, limited license markets such as New York, New Jersey, Ohio and Pennsylvania, amongst others, and this senior secured credit facility is the first step towards developing a long-term relationship.”
“We are pleased to have partnered with AFC Gamma and Viridescent to increase our financial flexibility as we enter our next phase of growth,” said Steve Goertz, Chief Financial Officer of Acreage. “This transaction represents another strategic step in our efforts to drive profitability, strengthen our balance sheet and accelerate our growth in our core markets which will ultimately maximize shareholder value. We look forward to furthering our relationship with AFC Gamma and Viridescent as we continue to position Acreage for long-term success and industry leadership.”
AFC Gamma has committed $60 million under Acreage’s $100 million senior secured credit facility, with an additional $10 million syndicated to an affiliate and the remaining $30 million committed by Viridescent. The facility is secured by first-lien mortgages on Acreage’s owned real estate properties and other commercial security interests. The senior secured facility also includes a committed accordion option for a further $50 million that is available in future periods once certain predetermined milestones are achieved. AFC Agent LLC served as Administrative Agent for the transaction.
