AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma”) today announced that it has expanded its senior credit facility by $53.4 million, to $75.4 million in total commitments to Justice Cannabis Co., a Chicago-based multi-state operator with licenses in eight states. The credit facility expansion is designed to provide Justice Cannabis Co. with additional capital to purchase assets and develop its operations in New Jersey, further develop its Pennsylvania cultivation facility and refinance existing debt.
“We are committed to the long-term success of our borrowers, and today’s announcement demonstrates AFC Gamma’s ability to support existing borrowers’ capital needs as they seek to expand their businesses and achieve new strategic objectives,” said Leonard M. Tannenbaum, AFC Gamma’s Chief Executive Officer. “We believe that Justice Cannabis Co. has one of the best license stacks for a multi-state operator and are proud to further our partnership with them in Pennsylvania and New Jersey, two states with favorable supply and demand dynamics.”
“AFC Gamma continues to be a great asset to Justice Cannabis Co. throughout our partnership, and we are pleased to have the opportunity to utilize their flexibility and lending capabilities to support our next chapter of growth,” said Jon Loevy, Co-Founder of Justice Cannabis Co. “It is refreshing to have a capital partner that understands the dynamic nature of the cannabis industry and can anticipate and meet our capital needs.”
AFC Gamma has committed an additional $43.4 million under Justice Cannabis Co.’s expanded credit facility, with $10.0 million syndicated to an affiliate. AFC Gamma now holds a total of $65.4 million of the $75.4 million expanded credit facility. The loan is secured by a first-lien mortgage on Justice Cannabis Co.’s owned real-estate in New Jersey and Pennsylvania and other commercial-security interests. AFC Management, LLC served as Agent for the transaction.