Business
AFC Gamma Provides FarmaceuticalRX with Senior Secured Credit Facility of up to $21 Million to Fund Its Ohio Expansion
Highlights AFC Gamma’s Second Transaction to Growing Ohio Medical Marijuana Market WEST PALM BEACH, Fla., April 06, 2021 (GLOBE NEWSWIRE) -- AFC Gamma, Inc.
About this update from Advanced Flower Capital Inc.
[{"type":"text","content":"Highlights AFC Gamma’s Second Transaction to Growing Ohio Medical Marijuana Market\nWEST PALM BEACH, Fla., April 06, 2021 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC”) today announced it has provided a credit facility of up to $21 million for FarmaceuticalRX LLC (“FarmRX”, the “Company”, or the “Borrower”). The credit facility is designed to provide capital to allow FarmRX to purchase and complete the build out of its +/-120,000 square foot Class 1 cultivation and processing facility and acquire the building housing its nearby dispensary operations in East Liverpool, Ohio. “We are excited to support FarmaceuticalRX, an experienced operator in Pennsylvania as it expands into Ohio, a state that has favorable supply and demand dynamics and significant growth prospects,” said Leonard M. Tannenbaum, AFC’s Chief Executive Officer. “We believe this partnership will serve as the catalyst for FarmRX’s next phase of growth.” Rebecca Meyers, FarmRX’s Chief Executive Officer, added, “I am thrilled to partner with AFC Gamma as we build out FarmRX’s presence in Ohio. AFC provided us with industry expertise and a tailored solution that met our needs, providing seamless execution in a timely manner.” AFC will hold up to $21 million of the credit facility, which consists of a first-lien term loan that can be drawn upon over the course of a one-year period. The loan will be secured by first-lien mortgages on FarmRX’s wholly owned real estate properties and other commercial-security interests. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction. Based in East Liverpool, Ohio, FarmRX currently has one dispensary license, one provisional Class 1 cultivation license, and one provisional processing license in the state. FarmRX’s dispensary is currently operational and it is in the process of building out its cultivation and processing operations, with a sister company having existing cultivation operations in Pennsylvania. Ohio legalized the use of medical marijuana in 2016, with sales launching in 2019. In 2021, sales from dispensaries are projected to reach $425 million, nearly doubling 2020 sales of $221.5 million1. Sales are expected to top $500 million by 2022 or 2023. As of March 19, 2021, the number of registered patients in the state was over 175,000. About AFC Gamma, Inc. AFC Gamma, Inc. (NASDA...