AFC Gamma provides Bloom Medicinals with $82.5 million
WEST PALM BEACH, Fla., April 21, 2022 (GLOBE NEWSWIRE) — AFC Gamma, Inc. (NASDAQ: AFCG) (“AFC Gamma”) today announced that it has provided a senior secured credit facility of up to 82 $.5 million to Bloom Medicinals Holding Company and certain of its affiliates (“Bloom”), a private, multi-state cannabis operator with licenses in Missouri, New Jersey and Ohio. Bloom intends to use proceeds from the new credit facility to repay existing debt, fund expansion initiatives, acquire a Level 1 cultivation license in Ohio and provide additional working capital.
“We are thrilled to support Bloom’s business as they acquire a Level 1 Cultivation License in Ohio, which, coupled with their five existing dispensaries, gives them a vertical presence in Ohio, a state that, in our view, has an attractive medical cannabis program. This acquisition allows their business operations to be vertically integrated in Ohio and Missouri,” said Leonard M. Tannenbaum, general manager of AFC Gamma. “Furthermore, we are pleased to continue our longstanding relationship with Bloom, refinancing two outstanding loans and providing growth capital in this third loan. This relationship is a great example of our ability to support the expansion of our customers and to grow with them over time.
“We are delighted to have partnered with AFC Gamma to strengthen our balance sheet as we enter our next phase of growth,” said Nicole Stark, Bloom’s Chief Executive Officer. “This is our third transaction with AFC Gamma and we are delighted to continue with them as a lender, given their flexibility and creativity in structuring a loan to meet our ever-changing needs. AFC Gamma was there to support the growth of our business at a time when traditional lenders could not understand the nuances of the cannabis industry. We look forward to using this latest funding to grow our business and provide medical products from high quality to our growing community of patients.
AFC Gamma has committed $82.5 million under Bloom’s senior secured credit facility. The facility is secured by first ranking mortgages on real estate owned by Bloom and other commercial security interests. AFC Agent LLC served as agent for the transaction.
About AFC Gamma
AFC Gamma, Inc. (NASDAQ: AFCG) is an institutional lender that provides a range of lending solutions to established operators in the cannabis industry. AFC Gamma originates, structures and underwrites senior secured loans and other types of operator financing in states that have legalized medical and/or adult cannabis. AFC Gamma’s management team has over 100 years of combined experience in investment management and disciplined credit investing through a range of economic cycles.
About Bloom Medicinals Holding Company
Based in Boca Raton, Florida, Bloom owns and operates several medical cannabis businesses across the United States. With an active presence in Ohio, Missouri, New Jersey and Florida, Bloom has become one of the most recognizable brands and multi-state cannabis licensees in the industry. medical marijuana.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which reflect AFC Gamma’s current beliefs and projections regarding, among other things, future events and financial performance. Words such as “believe”, “expect”, “will”, “intend”, “plan”, “estimate”, “project” and “anticipate” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements regarding (i) Bloom’s expansion and growth strategies, and AFC Gamma’s role in such growth; and (ii) Bloom’s operations and use of the Products are subject to the uncertainties inherent in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of AFC Gamma’s manager to actively monitor and manage AFC Gamma’s loan portfolio and implement its investment strategy; demand for cannabis cultivation and processing facilities; and other factors discussed under “Risk Factors” and elsewhere in AFC Gamma’s Annual Report on Form 10-K filed March 10, 2022, could cause actual results and performance to differ materially from those projected in these forward-looking statements. AFC Gamma undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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