AFC Gamma and Viridescent Realty Trust Amend $150 Million Credit Facility to Acreage Holdings
October 25 2022 - 7:07AM
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.
About AFC Gamma, Inc.AFC Gamma, Inc.
(NASDAQ:AFCG) is an institutional lender that provides a range of
lending solutions to established operators in the cannabis
industry. AFC Gamma originates, structures and underwrites senior
secured loans and other types of financing to operators in states
that have legalized medicinal and/or adult-use cannabis. AFC
Gamma’s senior management team has over 100 years of combined
experience in investment management and disciplined credit
investing across a range of economic cycles.
About Viridescent Realty Trust, Inc.Viridescent
is a commercial real estate finance company focused on originating,
structuring, underwriting, and managing senior secured loans for
established companies that operate in the cannabis industry. With
over 25 years of first-hand cannabis industry experience coupled
with 75 years of combined experience in private credit, real estate
lending, retail, real estate acquisitions and development,
investment advice, risk management and consulting, Viridescent’ s
broad knowledge and network in the cannabis industry position it to
be a strategic and valued partner for providing customized and
tailored financing solutions to the industry.
About Acreage Holdings, Inc.Acreage is a
multi-state operator of cannabis cultivation and retailing
facilities in the U.S., including its national retail store brand,
The Botanist. With its principal address in New York City,
Acreage’s wide range of national and regionally available cannabis
products include the award-winning The Botanist brand, craft brand
Superflux, the Tweed brand, the Prime medical brand in
Pennsylvania, the Innocent brand in Illinois and others. Acreage
also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the
distribution, marketing and sale of CBD products throughout the
U.S. Since its founding in 2011, Acreage has focused on building
and scaling operations to create a seamless, consumer-focused,
branded experience. Learn more at www.acreageholdings.com and
follow us on Twitter, LinkedIn, Instagram, and Facebook.
Forward-Looking StatementsThis news release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that reflect the
company’s current views and projections with respect to, among
other things, future events and Acreage’s anticipated expansion and
financial performance. All statements other than historical facts
are forward-looking statements. 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, risks and uncertainties discussed under the
caption “Risk Factors” and elsewhere in AFC Gamma’s most recently
filed periodic reports on Form 10-K and Form 10-Q and subsequent
filings could cause actual results and performance to differ
materially from those projected in these forward-looking
statements.
AFC GAMMA, INC. INVESTOR CONTACT:Robyn
Tannenbaum561-510-2293ir@advancedflowercapital.comwww.afcgamma.com
AFC GAMMA, INC. MEDIA CONTACT:Mark
SinclairMATTIO Communicationsmark@mattio.com
VIRIDESCENT REALTY TRUST, INC. CONTACT:Steven
Miller203-561-2795
ACREAGE HOLDINGS, INC. CONTACT:Steve Goertz,
Chief Financial Officerinvestors@acreageholdings.com
Courtney Van AlstyneMATTIO Communicationsir@mattio.com
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