Marijuana industry lender AFC Gamma common stock offering seeks to raise $61.5M

(This story has been updated to include the price of the share offering.)

Marijuana industry real estate financier AFC Gamma launched an underwritten public offering of 3 million shares of common stock.

The underwriters will have a 30-day option to purchase up to 450,000 more shares, the Florida-based company announced late Monday.

The stock offering will be priced at $20.50 per share to raise anticipated gross proceeds of $61.5 million, not including underwriting discounts, commissions, other expenses or the underwriters’ additional share purchase option, AFC Gamma said late Wednesday.

The company said the proceeds will be used to fund “unfunded commitments to (AFC Gamma’s) existing borrowers” as well as for new cannabis industry loans, “working capital and other general corporate purposes,” according to a news release.

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AFC Gamma raised $100 million in a senior notes offering in October and participated in a loan to cannabis multistate operator Acreage Holdings in December.

AFC Gamma shares trade as AFCG on the Nasdaq exchange.