AFC Gamma raising $100 million to finance loans to cannabis companies

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AFC Gamma priced an offering of $100 million aggregate senior notes to qualified institutional investors, the West Palm Beach, Florida-based company said Friday.

AFC Gamma said it will use the proceeds from the offering to fund loans to existing borrowers and for companies operating in the cannabis industry.

The notes, which have an interest rate of 5.75%, mature on May 1, 2027.

AFC Gamma structures and underwrites senior secured loans and other types of loans in states that have legalized and regulated medical or adult-use cannabis.

An example is the company’s role in helping fund a $120 million loan to Verano Holdings Corp. in October.