AFC Management, LLC announced that an affiliate, AFC Gamma, Inc. ("AFC"), has funded a $22 million credit facility for Organic Remedies, Inc. ("Organic Remedies" or the "Company"). The credit facility is designed to provide capital to complete the build out of Organic Remedies' +/-240,000 square foot cultivation and processing facility, as well as build out three additional dispensaries, under its Clinical Registrant ("CR") medical marijuana license. AFC will hold $22 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. The loan will be secured by first-lien mortgages on Organic Remedies' wholly owned real estate properties and other commercial-security interests. AFC Management served as Lead Arranger and Administrative Agent for the transaction.
Founded in Pennsylvania in 2018, Organic Remedies is a single-state vertically integrated cultivator and retailer of medical cannabis. The Company currently operates three dispensaries, is finalizing the buildout of a +/-240,000 square foot cultivation and processing facility and has the ability to open an additional three dispensaries under its CR license.
"Having seen several recent acquisitions of cannabis operators in the state of Pennsylvania, we believe that Pennsylvania is finally being recognized by industry providers as one of the leading medical cannabis markets in the United States," said Leonard M. Tannenbaum, AFC's Chief Executive Officer, continuing, "We are excited to partner with Organic Remedies as they leverage their agricultural expertise, to support what will be one of the largest cultivators in Pennsylvania."
Mark Toigo, Organic Remedies Chief Executive Officer, concurred, adding, "I am very excited to have AFC Gamma as our partner to help build upon our strong operations and catalyze the next phase of the company's growth as we seek to be a premier vertically-integrated provider in Pennsylvania. We were very impressed with AFC's institutional approach, cannabis-industry expertise, as well as their flexibility and speed of execution to complete a transaction. We look forward to working together with AFC to achieve our objectives."