NEWS BRIEF

Cannabis real estate financier AFC Gamma prices Nasdaq IPO at $119M

AFC Gamma, which offers real estate loans to legal marijuana companies, priced its initial public offering on the Nasdaq exchange to raise net proceeds of roughly $118.8 million before underwriting discounts, commissions and other expenses.

According to a news release, the Florida-based company priced the offering of 6.25 million common shares at $19 per share, the high end of the $17-$19 range presented when it announced the IPO in February.

The underwriters have a 30-day option to purchase 937,500 more shares at the IPO price.

AFC Gamma said it will use the proceeds to fund loans to existing borrowers, originate new commercial loans and repay its own outstanding borrowings under a revolving credit facility, as well as for working capital and general corporate purposes.

The company “intends to elect and qualify to be taxed as a real estate investment trust, commencing with its taxable year ending December 31, 2020,” AFC Gamma said in the release.

Shares of AFC Gamma have begun trading on the Nasdaq under the ticker symbol AFCG.

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