Marijuana lender AFC Gamma gets $60 million revolving loan from 2 banks

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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.

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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.