AFC Gamma provided a credit facility of $13 million to a Missouri medical cannabis operator. The credit facility is designed to provide capital to allow the Borrower to build out its cultivation and dispensary operations in the state of Missouri.

AFC will hold the full $13 million of the credit facility, which consists of a first-lien term loan that can be drawn upon over the course of a one-year period primarily for real estate acquisitions and construction. The loan will be secured by first-lien mortgages on the Borrower’s wholly-owned real estate properties and other commercial-security interests. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction.

“We are excited to support and partner with this borrower as they continue to build upon their existing business by expanding into a new state. Additionally, we are pleased to enter a new state for AFC and look forward to making additional investments in the Missouri market,” said Leonard M. Tannenbaum, AFC’s Chief Executive Officer.

Jonathan Kalikow, Partner and Head of Real Estate at AFC said, “As the medical cannabis market continues to expand, AFC’s investment expertise and institutional approach provides the industry’s highest quality companies with the customized financing solutions they need to support their continued growth. We look forward to partnering with all of our borrowers to help them succeed in this flourishing environment.”

The Borrower owns and operates multiple medical cannabis businesses throughout the United States.

Missouri legalized the use of medical marijuana in 2018, with sales launching in October 2020. Since the program launched in October, sales in Missouri have hit almost $25 million with 90,000 registered patients as of March 30, 2021. For the full year 2021, medical marijuana sales in Missouri are projected to reach $225 - 300 million.