AFC Gamma Provides Evermore with $15.5 Million Senior Secured Credit Facility to Support its Maryland Expansion and Streamlin...
July 15 2021 - 8:30AM
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 SnapshotMaryland 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
About AFC Gamma, Inc.
AFC Gamma, Inc. (NASDAQ:AFCG) is an institutional lender to
leading cannabis companies with strong operations and cash-flow
prospects, real-estate-security and other collateral, and locations
in states with favorable supply/demand fundamentals and legislative
environments. AFC’s platform provides innovative and customized
financing solutions through first-lien loans, mortgage loans,
construction loans and bridge financings. The senior-management
team of the company has a combined approximately 100 years of
experience in investment management and disciplined credit
investing across a range of economic cycles.
About The Evermore Cannabis Company
Evermore is currently Baltimore City's only licensed medical
cannabis cultivator and processor. Evermore consists of principals
and team members who are Baltimore natives committed to supporting,
educating, and giving back to the communities they serve.
Evermore's patient-centric, quality-based approach is founded on
and defined by products and services of the highest quality, purity
& design. Evermore will continue to cultivate, process and
distribute the same high-quality, lab tested medical cannabis
products that patients across Maryland have come to know and love
over the past few years. New, infused edible products will soon
come to market to join our popular DISCOS line as we strive to
exceed industry standards and deliver the most desirable medical
cannabis products in Maryland and beyond.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that reflect the AFC’s current views and projections with respect
to, among other things, future events and financial
performance. All statements other than historical facts,
including, without limitation, statements regarding The Evermore
Cannabis Company intended business and the projected sales of
medical marijuana in Maryland are forward-looking statements, and
AFC intends such statements to be covered by the safe harbor
provisions contained therein. Words such as “believes,” “expects,”
“will,” “intends,” “plans,” “guidance,” “estimates,” “projects,”
“anticipates,” and “future” or similar expressions are intended to
identify forward-looking statements. These forward-looking
statements are subject to the inherent uncertainties in predicting
future results and conditions and are not guarantees of future
performance, conditions or results. Certain factors,
including the borrower failing to complete the expansion and
consolidation of ownership described above, an unfavorable change
in the regulations of the cannabis industry and other important
risks and uncertainties discussed under the caption “Risk Factors”
in our final prospectus filed with the U.S. Securities Exchange
Commission on June 24, 2021, relating to the AFC’s Registration
Statement on Form S-11, as amended (File No. 333-257248), could
cause actual results and performance to differ materially from
those projected in these forward-looking statements. New
risks and uncertainties arise over time, and it is not possible for
the company to predict those events or how they may affect
AFC. Therefore, you should not place undue reliance on these
forward-looking statements. AFC does not undertake any
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events,
changes in AFC’s expectations or otherwise, except as required by
law.
AFC GAMMA INVESTOR CONTACT:
Robyn Tannenbaum561-510-2293
ir@advancedflowercapital.comwww.afcgamma.com
AFC GAMMA MEDIA CONTACT:
Jim Golden / Scott Bisang / Jack KelleherJoele Frank, Wilkinson
Brimmer Katcher212-355-4449THE EVERMORE CANNABIS COMPANY INVESTOR
CONTACT:
Craig SchulmanCraig@evermorecompany.com
1 Maryland's cannabis market hit $1 billion in sales. The next
billion will come quicker. (Baltimore Business Journal, April 26,
2021)2 BDSA. (n.d.). [online] Available at: https://bdsa.com/
[Accessed 13 Jul. 2021].
AFC Gamma (NASDAQ:AFCG)
Historical Stock Chart
From Aug 2024 to Sep 2024
AFC Gamma (NASDAQ:AFCG)
Historical Stock Chart
From Sep 2023 to Sep 2024