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Highlights AFC Gamma’s Second Transaction In The Growing Ohio Medical Marijuana Market
WEST PALM BEACH, Florida, April 6, 2021 (GLOBE NEWSWIRE) – AFC Gamma, Inc. (NASDAQ: AFCG) (“AFC”) announced today that it has provided a credit facility of up to $ 21 million to FarmaceuticalRX LLC (“FarmRX”, the “Company” or “the Borrower”). The credit facility is designed to provide capital to enable FarmRX to purchase and complete construction of its +/- 120,000 square foot Class 1 grow and process facility and acquire the building housing its operations. from nearby dispensary in East Liverpool, Ohio.
“We are delighted to support FarmaceuticalRX, a seasoned operator in Pennsylvania as it grows in Ohio, a state that has favorable supply and demand dynamics and significant growth prospects,” said Leonard M. Tannenbaum, CEO of AFC. “We believe this partnership will serve as a catalyst for the next phase of FarmRX growth.”
Rebecca Meyers, CEO of FarmRX, added, “I am delighted to partner with AFC Gamma as we strengthen FarmRX’s presence in Ohio. AFC provided us with industry expertise and a bespoke solution that met our needs, providing seamless and timely execution. “
AFC will hold up to $ 21 million of the credit facility, which consists of a senior term loan that can be used over a period of one year. The loan will be secured by first mortgages on FarmRX wholly owned real estate properties and other commercial collateral. AFC Management, LLC acted as lead manager and administrative agent for the transaction.
Based in East Liverpool, Ohio, FarmRX currently has a Dispensary License, a Class 1 Interim Growing License and a State Interim Processing License. FarmRX’s dispensary is currently operational and is in the process of expanding its growing and processing operations, a sister company with cultivation operations in Pennsylvania.
Ohio legalized the use of medical marijuana in 2016, with sales launching in 2019. In 2021, dispensary sales are expected to reach $ 425 million, nearly double the sales of 221.5 million. million dollars in 2020.1. Sales are expected to exceed $ 500 million by 2022 or 2023. As of March 19, 2021, the number of registered patients in the state exceeded 175,000.
About AFC Gamma, Inc.
AFC Gamma, Inc. (NASDAQ: AFCG) is an institutional lender to major cannabis companies with strong cash flow operations and prospects, real estate security and other collateral, and locations in states with supply and demand fundamentals and legislative environments are favorable. The AFC platform offers innovative and personalized financing solutions through senior loans, mortgages, construction loans and bridge financing. The Company’s senior management team has approximately 100 years of investment management and disciplined credit investing experience over a range of economic cycles.
FarmaceuticalRX LLC is the leading operator of natural and organic multistate vertically integrated medical marijuana in the United States. FarmaceuticalRX is focused on bringing research and development-based innovation to the medical marijuana industry. develops high quality artisanal products and innovative organic products under its existing FarmaceuticalRX brand. The company’s Burst of Wellness brand combines the quality FARMACEUTICALRX is known for, at a lower price point, with the goal of expanding the company’s reach to a wider patient group. FarmaceuticalRX affiliates are licensed to provide high quality medical marijuana products to over 26 million patients in Ohio and Pennsylvania. FarmaceuticalRX is led by a world-class team of scientists, healthcare, organic food and beverage and cannabis industry professionals who are driven by the discovery, development and manufacture of groundbreaking natural and organic products. high quality via its vertically integrated platform. Our innovation is your future health. Learn more about www.farmaceuticalrx.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views and projections with respect to, among other things, future events and financial performance. All statements other than historical fact, including, without limitation, statements regarding the planned construction of FarmRX and the proposed sales of medical marijuana in Ohio are forward-looking statements. Words such as “believes”, “expects”, “will”, “intends”, “plans”, “guide”, “estimates”, “projects”, “anticipates” and “future” or Similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the uncertainties inherent in forecasting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the borrower who has not completed the construction described above, an adverse change in regulation of the cannabis industry and other significant risks and uncertainties discussed under “Risk Factors” in our final prospectus filed with the US Securities Exchange Commission on March 19, 2021, relating to the company’s registration statement on Form S-11, as amended (File No. 333-251762), could result in material differences between actual results and performance and those projected in these forward-looking statements. New risks and uncertainties arise over time, and it is not possible for the Company to predict these events or how they could affect AFC Gamma, Inc. Therefore, you should not place undue reliance on these forward-looking statements. The company assumes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
AFC GAMMA INVESTOR CONTACT:
AFC GAMMA MEDIA CONTACT:
Jim Golden / Scott Bisang / Jack Kelleher
Joele Frank, Wilkinson Brimmer Katcher
Director of Strategic Finance, FarmaceuticalRX
1 Ohio’s Growing Medical Marijuana Market On The Way To $ 400 Million In Sales A Year (Marijuana Business Daily, March 29, 2021)