AFC Gamma Provides Justice Cannabis Co. With $22 Million Senior Secured Credit Facility to Fund its New Jersey Expansion
Represents AFC Gamma’s First Transaction in Expanding New Jersey Medical and Adult Use Marijuana Market
WEST PALM BEACH, Fla., May 06, 2021 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG)
(“AFC”) today announced it has provided a credit facility of $22 million to Justice Cannabis Co., a Chicago-based multi-state operator with licenses in eight states. The credit facility is designed
to provide Justice Cannabis Co. with the capital necessary to purchase and complete the build out of its 72,000 square foot cultivation and processing facility, along with the buildout of a
dispensary, both in Ewing, New Jersey.
“We are pleased to support Justice Cannabis Co. as it continues to expand its operations in New Jersey,” said Leonard M. Tannenbaum, AFC’s Chief Executive Officer. “With adult use marijuana recently legalized in the state, we believe New Jersey will have favorable supply and demand dynamics for years to come and we are excited to be working with Justice Cannabis Co. in order to fully capitalize on this growing market.”
Jon Loevy, Justice Cannabis Co.’s Founder, added, “As we continue building on our presence in this highly attractive cannabis market, we are very excited to have the support and partnership of AFC. AFC has proven investment expertise in the cannabis space and provided us with an institutionally minded financing solution that supports our specific needs. We look forward to continuing to work with AFC to achieve our objectives.”
AFC will hold the entire $22 million of the credit facility, which consists of a first-lien term loan. The loan is secured by first-lien mortgages on Justice Cannabis Co.’s wholly owned real estate properties in New Jersey and other commercial-security interests. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction.
New Jersey Cannabis Snapshot
New Jersey legalized the use of medical marijuana in 2010, with sales launching in 2019. Adult use marijuana was legalized in 2021. By 2024, the state expects to achieve sales of between $850 million and $950 million, with significant opportunities to exceed this range, depending on licensing details which will be developed over time.1
1 New Jersey voters legalize a potential billion dollar adult use market (Marijuana Business Daily, November 4, 2020)
About AFC Gamma, Inc.
AFC Gamma, Inc. (NASDAQ:AFCG) is an institutional lender to leading cannabis companies with strong operations and cash-flow prospects, real-estate-security and other collateral, and locations in states with favorable supply/demand fundamentals and legislative environments. AFC’s platform provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans and bridge financings. The senior-management team of the company has a combined approximately 100 years of experience in investment management and disciplined credit investing across a range of economic cycles.