Marijuana industry lender AFC Gamma said it secured a revolving credit facility worth at least $60 million from two federally insured banks.
The Florida-based company did not identify the banks in a Monday news release but said they have combined assets of more than $70 billion.
AFC Gamma can increase the size of the senior secured revolving credit facility to $100 million.
The company said it plans to use the capital to bankroll unfunded loans to existing borrowers as well as to make new loans.
It also plans to use the money “for working capital and other general corporate purposes.”
The credit facility matures in April 2025 and carries a floating interest rate of prime plus 0.5%, with a prime floor of 4%.
AFC Gamma said it has terminated a previous revolving credit facility worth $75 million from AFC Finance, described as an affiliate of AFC Gamma CEO Leonard Tannenbaum.
Apply to speak at MJBizCon 2023
Think you’ve got a great story, insights, or best practices to share about your cannabis business? We want to hear from you!
The MJBizCon team is now accepting speaker applications for the 2023 event in Las Vegas.
We are looking for engaging industry leaders from all sectors of the cannabis industry, whether you run a multi-state operation or a mom-and-pop business.
Apply to speak at MJBizCon today – The speaker application portal closes May 5!
Recent cannabis industry loans from AFC Gamma include an $82.5 million commitment to Bloom Medicinals and $46.3 million in expanded loans to Verano Holdings, Nature’s Medicines and Natrabis.
AFC Gamma shares trade on the Nasdaq exchange as AFCG.
