Marijuana property loan provider AFC Gamma to boost as much as $105M in IPO

Marijuana industry investment trust Advanced Flower Capital, also called AFC Gamma, is preparing a short general public providing regarding the Nasdaq trade that’s designed to raise $94.4 million to $105.6 million.

The providing would include the purchase of 5,555,555 stocks of typical stock in AFC Gamma, or approximately 47% of all company’s common stock, at a high price of $17-$19 per share, in accordance with a prospectus dated Feb. 2.

An over-allotment option would offer to 833,333 shares that are additional

West Palm Beach, Florida-based AFC Gamma, founded in July 2020, offers loans to established cannabis companies in states where marijuana is legal for medical or use that is recreational

“because of the money constrained cannabis market which doesn’t routinely have usage of conventional bank funding and faces restrictions on accessing equity areas, we think we’re well placed to be a prudent financing source to established cannabis industry operators provided our strict underwriting requirements, size and scale of operations and institutional infrastructure,” AFC Gamma noted into the prospectus.

The business had approximately $92.5 million in outstanding loans to eight borrowers at the time of Dec. 26, with commitments “to around $19.8 million in extra loans and commitments from current loans, with around $485.2 million of prospective loans earnestly under review within our pipeline,” based on the prospectus.

AFC Gamma expects to web roughly $91 million through the IPO, or up to $105 million in the event that over-allotment choice is completely exercised, centered on an $18 IPO cost.

The business would make use of the profits to settle borrowings that are outstanding fund its current $19.8 million loan commitments and originate new loans as well as for working capital and other general corporate purposes.

AFC Gamma raised $80 million for loans August that is last loaned $22 million to Pennsylvania-based natural treatments in November.

The company’s proposed Nasdaq icon will be AFCG.

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