AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC”), a commercial real estate finance company that provides loans to operators in the cannabis industry, today announced that it, along with an affiliate, has provided a credit facility of $15.5 million to The Evermore Cannabis Company (“Evermore”), a vertically integrated Maryland operator. The credit facility is designed to provide Evermore with additional capital for the expansion of its cultivation and manufacturing facility in Baltimore, Maryland and to consolidate and streamline its ownership structure.
“We are pleased to support Evermore with our first direct investment in Maryland, a fast-growing market with tremendous potential,” said Leonard M. Tannenbaum, AFC’s Chief Executive Officer. “Following a bridge loan, this credit facility is just the first step in a long-term relationship with Evermore and we look forward to supporting its efforts as it looks to acquire real estate and expand its cultivation and manufacturing facility.”
Craig Schulman, Evermore’s Chairman & Managing Principal, added, “As we continue expanding in this strong and attractive market, we are excited to have the support and partnership of AFC Gamma, a proven leader in the cannabis space and a flexible lender that was able to accommodate our capital needs quickly and efficiently. We look forward to partnering with AFC Gamma in the months and years ahead as we execute on our growth objectives in Maryland.”
AFC will hold $10.075 million of the credit facility and $5.425 million was syndicated to an affiliate, which consists of a first-lien term loan. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction. Greenvision acted as Evermore’s Financial Advisor.
Maryland Cannabis Snapshot
Maryland legalized the use of medical marijuana in 2014, with sales launching in 2017. In 2021, sales surpassed $135 million for the first three months of the year. The executive director of the Maryland Medical Cannabis Commission (“MMCC”) has stated that the industry is on pace to deliver approximately $550 million in total for the 2021 calendar year. The Maryland cannabis industry hit a major milestone in April of 2021 when total retail sales reached $1 billion, and given the current growth pace, the MMCC anticipates $2 billion in sales will be achieved in about half the time.1 Should adult-use receive approval in the state, BDSA projects Maryland’s cannabis market will achieve $1 billion in annual sales by 2024.2
