AFC Gamma Extends Credit To Justice Cannabis - Grow Life 420

AFC Gamma Extends Credit To Justice Cannabis

October 04, 2021

#KahliBuds #MMJ #CBD #THC

Cannabis real estate lender AFC Gamma, Inc. (NASDAQ: AFCG) said that it has expanded its senior credit facility by $53.4 million, to $75.4 million in total commitments to Chicago-based Justice Cannabis Co., a multi-state operator with licenses in eight states. Justice Cannabis will use the money to make acquisitions and develop its operations in New Jersey, further develop its Pennsylvania cultivation facility, and refinance existing debt.

“We are committed to the long-term success of our borrowers, and today’s announcement demonstrates AFC Gamma’s ability to support existing borrowers’ capital needs as they seek to expand their businesses and achieve new strategic objectives,” said Leonard M. Tannenbaum, AFC Gamma’s Chief Executive Officer. “We believe that Justice Cannabis Co. has one of the best license stacks for a multi-state operator and are proud to further our partnership with them in Pennsylvania and New Jersey, two states with favorable supply and demand dynamics.”

In New Jersey, Justice Cannabis has broken ground on its first cultivation center in Ewing Township, where the company also plans to open a 5000 sq. ft. dispensary nearby the cultivation. The 72,000 sq. ft. indoor cultivation will specialize in cannabis flower and extract products. In Pennsylvania, Justice Cannabis holds licenses for both dispensary operations and cultivation/processing sites. Currently, there are two Justice Cannabis Co. medical dispensaries open in the state operating as Justice Grown, located in Edwardsville and Dickson City, with a third dispensary location in Bethlehem, operating as Bloc Dispensary. Additionally, the company has just broken ground on a massive 76,000 sq. ft. cultivation and processing center located in Hazel Township.

AFC Gamma said it has committed an additional $43.4 million under Justice Cannabis Co.’s expanded credit facility, with $10.0 million syndicated to an affiliate. AFC Gamma said that it now holds a total of $65.4 million of the $75.4 million expanded credit facility. According to the statement, the loan is secured by a first-lien mortgage on Justice Cannabis Co.’s owned real-estate in New Jersey and Pennsylvania and other commercial-security interests. AFC Management, LLC served as Agent for the transaction.

“AFC Gamma continues to be a great asset to Justice Cannabis Co. throughout our partnership, and we are pleased to have the opportunity to utilize their flexibility and lending capabilities to support our next chapter of growth,” said Jon Loevy, Co-Founder of Justice Cannabis Co. “It is refreshing to have a capital partner that understands the dynamic nature of the cannabis industry and can anticipate and meet our capital needs.”

In addition to the update on Justice, AFC Gamma reported that when the quarter ended in September, its gross funding was $89.3 million, and its net funding, taking into account loan repayments and amortization, was $79.3 million. AFC Gamma said closed on total new commitments of $119.2 million during the quarter. AFC Gamma said it plans to be taxed as a real estate investment trust, beginning with its taxable year ending December 31, 2020.


The post AFC Gamma Extends Credit To Justice Cannabis appeared first on Green Market Report.



Debra Borchardt, KahliBuds, 420GrowLife

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