AFC Gamma, a real estate investment trust (REIT), has set up or expanded credit facilities totaling more than $18 million for three cannabis companies.
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The West Palm, Florida-based REIT will hold the entire credit facilities for the three cannabis companies, which are based in Georgia, Missouri and Florida.
Each facility consists of a first-lien term loan secured by all assets of the respective borrower.
AFC Gamma did not reveal the interest rates.
Georgia company leads with $11 million
The REIT “committed $11 million, including $4.3 million funded at closing, in a senior secured credit facility to Private Company Q,” which holds a Class 2 medical cannabis license in Georgia, according to a Monday news release from AFC Gamma.
Four companies in Georgia currently possess Class 2 permits, according to the Georgia Medical Cannabis Commission’s database, but none of the licensees is named Private Company Q.
AFC Gamma did not immediately respond to MJBizDaily requests seeking clarification on the Georgia company’s identification.
The Georgia company will use the funding to build a cultivation and processing facility and establish two new MMJ dispensaries in the state, the release noted.
AFC Gamma also committed an additional $5.5 million to BeLeaf Medical, a Missouri-based, vertically integrated cannabis company, to expand an existing credit facility.
The increase brings BeLeaf’s total funding to $26.1 million.
Earth City-headquartered BeLeaf will use the additional funds to partially finance the acquisition of two stores in Missouri, according to the release.
The third recipient of an AFC Gamma credit facility is Sunburn Cannabis.
The Florida-based MMJ dispensary chain received an additional $1.8 million, according to the AFC Gamma release, bringing Sunburn’s credit facility total to $36.5 million.
The additional funds will partially finance Sunburn’s build-out of two new dispensaries and additional low-cost cultivation capacity in Florida.
The terms of the credit facility remain consistent with the original March agreement, according to the release.
Poseidon also invests in Sunburn
Meanwhile, Sunburn Cannabis said it received another “capital investment” from San Francisco-based Poseidon Asset Management.
Neither firm disclosed funding details.
However, in conjunction with the investment, Sunburn announced that Poseidon co-founder Emily Paxhia had been appointed to the company’s board of managers.
Poseidon “is an early investor in Sunburn having made their initial investment in 2022,” the Florida MMJ company noted in its release
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