Cannabis Real Estate Loan Company AFC Gamma Prices Offering At $20.50

CANNANNEW REPORT

Commercial real estate finance company AFC Gamma, Inc.  (Nasdaq: AFCG) priced its underwritten public offering of 2,750,000 shares of its common stock at a public offering price of $20.50 per share. AFC Gamma has granted the underwriters of the Offering a 30-day option to purchase up to an additional 412,500 shares of common stock. AFC provides loans to operators in the cannabis industry. AFC Gamma anticipates total gross proceeds of approximately $56.4 million, before deducting underwriting discounts and commissions and other offering expenses and excluding any exercise of the underwriters’ option to purchase additional shares. AFC Gamma said it intends to use the net proceeds from the Offering to fund loans related to unfunded commitments to its existing borrowers, to originate and participate in commercial loans to companies operating in the cannabis industry that are consistent with its investment strategy, and for working capital and other general corporate purposes. The Offering is expected to close on or about June 28, 2021. In May the company delivered its first fiscal quarter 2021 earnings with net income of $1.4 million, or earnings of $0.20 per basic weighted average share of common stock. Distributable earnings in Q1 2021 of $3.2 million, or $0.45 per basic weighted average share of common stock. Ending Q1 2021 net book value per common share of $16.18 AFC Portfolio As of June 15, 2021, AFC’s portfolio was comprised of loans to 13 different borrowers, totaling approximately $158.6 million in total principal amount, with approximately $29.5 million in additional unfunded loan commitments to such borrowers. As of June 15, 2021, the loan portfolio had a weighted-average estimated YTM of approximately 21% and was secured by real estate, cash flows, and licenses. AFC said it reviewed 319 loan opportunities. As of June 15, 2021, it had funded 17 loans, of…

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