AFC Gamma lends $22M to Justice Cannabis for New Jersey operations

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Marijuana industry real estate financier AFC Gamma announced a $22 million senior secured credit facility for Chicago-based multistate MJ company Justice Cannabis.

Justice will use the credit facility to buy and complete construction on a 72,000-square-foot cultivation and processing facility in Ewing, New Jersey, as well as to finance construction on a dispensary in the same town, according to a Thursday news release from AFC Gamma.

The West Palm Beach, Florida-based real estate investment trust did not disclose the interest rate or the terms of repayment of the loan, which is secured against Justice’s New Jersey real estate “and other commercial-security interests”.

“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,” AFC Gamma CEO Leonard M. Tannenbaum said in a statement.

New Jersey approved a recreational cannabis market earlier this year, although legal adult-use cannabis sales have not yet launched.

AFC Gamma went public on the Nasdaq exchange in March via an initial public offering worth $119 million. The company’s shares trade as AFCG.

Chicago-based Justice Cannabis, formerly known as Justice Grown, holds marijuana business licenses in New Jersey, California, Illinois, Massachusetts, Michigan, Missouri, Pennsylvania and Utah.