AFC Gamma, Inc.

General Information
Business:

AFC Gamma, Inc. is a commercial real estate finance company founded in July 2020 by a veteran team of investment professionals. We originate, structure, underwrite and manage senior secured loans and other types of loans for established companies operating in the cannabis industry in states that have legalized medicinal and/or adult use cannabis. As states continue to legalize cannabis for medical and adult use, an increasing number of companies operating in the cannabis industry need financing. Due to the capital-constrained cannabis market which does not typically have access to traditional bank financing and faces limitations on accessing equity markets, we believe we are well positioned to become a prudent financing source to established cannabis industry operators, given our stringent underwriting criteria, size and scale of operations, and institutional infrastructure.

Note: AFC Gamma commenced operations on July 31, 2020. From July 31, 2020, through Sept. 30, 2020, AFC Gamma reported net income of about $2.11 million, according to the prospectus.

**More from the prospectus: “We are an externally managed Maryland corporation and will elect to be taxed as a REIT under Section 856 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ending Dec. 31, 2020. We believe that our proposed method of operation will enable us to qualify as a REIT. 

“As of Dec. 26, 2020, we had originated and funded loans totaling approximately $135.0 million in aggregate original principal amount to companies operating in the cannabis industry, had approximately $92.5 million of loans outstanding,and are committed to approximately $19.8 million in additional loans and commitments from existing loans, with approximately $485.2 million of potential loans actively under review in our pipeline.” 

(Note: AFC Gamma priced its REIT IPO on March 18, 2021, in sync with its upsized terms, disclosed in February: 6.25 million shares were priced at $19 to raise $118.75 million. Background: AFC Gamma refiled its REIT IPO on Feb. 24, 2021, with the same terms as before. The IPO was postponed on Wednesday, Feb. 17, 2021. The REIT IPO was upsized by 18.6 percent, according to an S-11/A filing dated Feb. 11, 2021, with an increase in the number of shares to 6.25 million, up from 5.6 million initially, and an increase in the price to $19, the top of its previous $17-to-$19 range.)

Industry: REIT
Employees: 0
Founded: 2020
Contact Information
Address 525 Okeechobee Blvd., Suite 1770 West Palm Beach, FL 33401
Phone Number (561) 510-2390
Web Address http://www.afcgamma.com
View Prospectus: AFC Gamma, Inc.
Financial Information
Market Cap $236.17mil
Revenues $5.25 mil (last 12 months)
Net Income $4.3 mil (last 12 months)
IPO Profile
Symbol AFCG
Exchange NASDAQ
Shares (millions): 6.3
Price range $19.00 - $19.00
Est. $ Volume $118.8 mil
Manager / Joint Managers JMP Securities/ Ladenburg Thalmann/ Seaport Global Securities
CO-Managers Lake Street
Expected To Trade: 3/19/2021
Status: Priced
Quiet Period Expiration Date:
Lock-Up Period Expiration Date:
SCOOP Rating
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