AFC Gamma provides BeLeaf Medical, LLC with a $ 23 million senior secured credit line to fund its Missouri expansion
Introduces AFC Gamma’s Second Deal In The Growing Missouri Medical Cannabis Market
WEST PALM BEACH, FL, Aug 31, 2021 (GLOBE NEWSWIRE) – AFC Gamma, Inc. (NASDAQ: AFCG) (“AFC”) today announced that it has provided a $ 23 million credit line. BeLeaf Medical, OOO (“BeLeaf”), an operator based in Missouri. The credit line is intended to provide BeLeaf with the capital needed to expand its three Missouri growers in Lake Front, Jonesburg and Cherokee, and to purchase a Jonesburg grower. The company has nearly completed construction of an approximately 25,000 square foot canopy between its properties and plans to add another 16,000 square feet.
“We are delighted to support BeLeaf in expanding production capacity in the growing Missouri market,” said Leonard M. Tannenbaum, CEO of AFC.
The management team has a wide and varied experience and as one of the early entrants to this market, we believe BeLeaf is well positioned to leverage its pioneering status to take advantage of the many opportunities provided by the state. We look forward to supporting BeLeaf’s continued progress in implementing its strategic plans.
Leonard M. Tannenbaum, CEO of AFC
“As we continue our expansion in Missouri, we are delighted to receive the support and expert partnership from AFC Gamma,” said Kevin Riggs, president of BeLeaf Medical.
At BeLeaf, we are dedicated to producing high quality colors and developing innovative, best-in-class products, resulting in significant growth and impressive customer loyalty.
Kevin Riggs, President of BeLeaf Medical
We look forward to introducing our exceptional products and brands to consumers in new markets as this has been our top priority every time we looked to expand. The same commitment to quality and service that we pride ourselves on every day will continue as we embark on this growth trajectory.
Tom Muzzy, CEO of BeLeaf, added: “AFC Gamma is one of the few lenders in the cannabis industry that not only understands our business model, but also has significant construction finance experience that plays a fundamental role in our growth strategy. Their flexibility, partnership mentality and speed of implementation have changed the game for us, and we look forward to continuing to work with them as our business grows. ”
AFC will own the entire $ 23 million line of credit, which consists of a first bond maturity loan. The loan will be secured by a first bond mortgage on the BeLeaf property in Jonesburg, after purchase, and other commercial guarantees. AFC Management, LLC acted as the lead arranger and administrative agent for the transaction.
Shot of Missouri Cannabis
Missouri legalized the use of medical marijuana in 2018, and sales will begin in October 2020. Since the program launched in October, sales in Missouri have reached $ 91 million, according to the Missouri Medical Association for the Cannabis Trade, with more than 130,000 registered patients as of July 31. 2021. According to Marijuana Business Daily, medical marijuana sales in Missouri are projected to reach $ 225-300 million over the course of 2021.
About AFC Gamma, Inc.
AFC Gamma, Inc. (NASDAQ: AFCG) is an institutional lender of leading cannabis companies with strong operations and cash flow prospects, real estate and other collateral, and state locations with favorable supply / demand fundamentals and regulatory environments. The AFC platform provides innovative and customized financial solutions through secured loans, mortgages, construction loans and bridge financing. The company’s senior management team has a combined experience of nearly 100 years in investment management and disciplined credit investment across a variety of business cycles.
About BeLeaf Medical, LLC
BeLeaf Medical Company is a leader in the medical cannabis industry and the largest vertically integrated company in Missouri with our family of brands; SIN, SWADE and PHYTOS. With years of experience in multiple states, we are able to supply the best cannabis flowers and industrial products to the market. SWADE CANNABIS Dispensaries offer a wide range of products and qualified staff to help clients find the best solutions.
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