AFC Gamma commits $ 60 million on $ 100 million credit facility
AFC agent acts as administrative agent alongside VRT agent as co-agent
WEST PALM BEACH, Fla., December 16, 2021 (GLOBE NEWSWIRE) – AFC Gamma, Inc. (NASDAQ: AFCG) (âAFC Gammaâ) today announced that it, together with Viridescent Realty Trust, Inc. (âViridescentâ) , provided a $ 100 million senior secured credit facility to Acreage Holdings, Inc. (CSE: ACRG.AU, ACRG.BU) (“Acreage”), a vertically integrated multi-state operator of cultivation and development. Cannabis retail facilities in the United States Acreage intends to use the proceeds of the new credit facility to repay existing debt, fund expansion initiatives and provide additional working capital.
âWe are delighted to support Acreage’s management team as it streamlines its capital structure and executes its refocused business plan,â said Leonard M. Tannenbaum, CEO of AFC Gamma. “We believe Acreage is well positioned in high growth, limited license markets such as New York, New Jersey, Ohio and Pennsylvania, among others, and this senior secured credit facility is the first step towards developing a long term relationship. “
âWe are delighted to have partnered with AFC Gamma and Viridescent to increase our financial flexibility as we enter our next phase of growth,â said Steve Goertz, CFO of Acreage. âThis transaction represents another strategic step in our efforts to increase profitability, strengthen our balance sheet and accelerate our growth in our key markets, which will ultimately maximize shareholder value. We look forward to continuing our relationship with AFC Gamma and Viridescent as we continue to position Acreage for long term success and industry leadership.
AFC Gamma 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 mortgages on real estate properties held by Acreage and other commercial security interests. The senior secured facility also includes a committed accordion option for an additional $ 50 million which is available in future periods once certain predetermined milestones are reached. AFC Agent LLC served as the administrative agent for the transaction.
About AFC Gamma
AFC Gamma, Inc. (NASDAQ: AFCG) is an institutional lender to major cannabis companies with strong operations and cash flow prospects, real estate security and other collateral, and locations in states with fundamentals of supply / demand and enabling legislative environments. AFC Gamma offers innovative and personalized financing solutions through senior loans, mortgages, construction loans and bridge financing. The AFC Gamma management team has approximately 100 years of combined experience in investment management and disciplined credit investing through a range of economic cycles.
About Viridescent Realty Trust, Inc.
Viridescent is a commercial real estate finance company focused on creating, structuring, underwriting and managing senior secured loans for established companies operating in the cannabis industry. With over 25 years of direct experience in the cannabis industry and 75 years of combined experience in private credit, mortgage lending, retail, real estate acquisitions and development, investment advice, management risk and consulting, Viridescent’s vast knowledge and network in the cannabis industry positions it as a strategic and valuable partner to provide personalized and industry-tailored financing solutions.
About Acreage Holdings, Inc.
Acreage is a multi-state operator of cannabis cultivation and retail facilities in the United States, including its national retail store brand, The Botanist. Based in New York City, Acreage’s wide range of cannabis products available nationally and regionally include the award-winning brand The Botanist, the highly recognizable brand Tweed, the Prime Medical brand in Pennsylvania, the Innocent Edibles brand in Illinois, the artisanal brand Superflux in Illinois and Ohio, and others. Acreage also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the distribution, marketing and sale of CBD products throughout the United States. experience. Learn more about www.acreageholdings.com and on Twitter, LinkedIn, Instagram, and Facebook.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which reflect AFC Gamma’s current opinions and projections regarding, among other things, future events and financial performance. Words such as “believe”, “expect”, “will”, “intend”, “plan”, “estimate”, “plan” and “anticipate” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements regarding (i) Acreage’s expansion and growth strategies, and AFC Gamma’s role in such growth; (ii) Acreage operations and use of revenues; and (iii) future transactions, are subject to the uncertainties inherent in forecasting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of the manager of AFC Gamma to locate suitable loan opportunities, to actively monitor and manage AFC Gamma’s loan portfolio and to execute its investment strategy; demand for cannabis cultivation and processing facilities; management’s current estimate of expected credit losses and the current reserve for expected credit losses and other factors discussed under âRisk Factorsâ and elsewhere in AFC Gamma’s final prospectus filed June 24 2021, regarding the AFC Gamma Registration Statement on Form S-11, as amended (File No. 333-257248) and Exhibit 99.2 of the current AFC Gamma Report on Form 8-K, filed on 6 October 2021, could cause actual results and performance to differ materially from those anticipated in these forward-looking statements. AFC Gamma assumes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
AFC GAMMA, INC. INVESTOR CONTACT:
MEDIA CONTACT AFC GAMMA, INC. :
CONTACT VIRIDESCENT REALTY TRUST, INC. :
ACREAGE HOLDINGS, INC. CONTACT :
Steve Goertz, Chief Financial Officer
Courtney van alstyne