AFC Gamma to Separate Commercial Real Estate Lending Business into Independent Public Company

• Post Separation, AFC Gamma to Remain Solely Focused on Lending in Cannabis Industry
• Expects to Complete Separation Mid-2024
• Company to Host Conference Call at 5:00 p.m. ET Today
  

WEST PALM BEACH, Fla., Feb. 22, 2024 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma”) today announced that its Board of Directors has unanimously approved a plan to spin-off its commercial real estate (“CRE”) portfolio into an independent, publicly traded company that intends to elect REIT status, Sunrise Realty Trust, Inc. (“SUNS”). The spin-off will result in two pure-play debt capital providers – one focused solely on the cannabis industry and a second on CRE in the southern United States. AFC Gamma believes that the separation will allow both companies to focus on their respective portfolios, articulate their own clear investment thesis, and have the flexibility to tailor their business strategies to best capture market opportunities within their specialization. The separation is expected to be completed in mid-2024.

Post separation, based on current portfolio information, it is expected that the two companies will be comprised of the following, with additional potential investments prior to separation:

AFC Gamma:	SUNS:
• Portfolio: 12 funded cannabis loans	• Portfolio: 2 funded CRE loans
• YTM: 21%(1)	• YTM: 16%(1)
• Assets: ~$330 million(2)	• Assets: ~$115 million(2)

“AFC Gamma’s Board and management team continuously evaluate strategic options to best position the company to drive value for shareholders. AFC Gamma has solidified its position as a leading institutional lender to state-licensed cannabis operators, and we believe now is the right time to spin off our traditional commercial real estate operations into a standalone public company,” said Daniel Neville, AFC Gamma’s Chief Executive Officer. “As separate companies, we believe each business will be better positioned to pursue tailored growth strategies. Furthermore, each company will benefit from separate cost of capital and will be able to attract an investor base ideally suited for the growth opportunities of its industry.”