AFC Gamma Provides Sunburn Cannabis with a Total of $34.0 Million Across Senior Secured Credit Facilities
26 Mars 2024 - 1:30PM
AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma” or the “Company”) today
announced that it has provided a total of $34.0 million in debt
capital across two senior secured credit facilities to High End
Holdings, LLC and Green Sentry Holdings, LLC d/b/a Sunburn Cannabis
(“Sunburn”), a private, vertically integrated, single-state Florida
operator. Sunburn intends to use the proceeds from the credit
facilities to refinance existing debt, provide working capital, and
build additional cultivation and processing facilities and new
retail dispensaries in its business plan.
“Since entering the Florida market in 2022, Sunburn has
continually increased its market share ranking in the top 5 of
Florida operators year-to-date based on product sold per
dispensary1,” said Daniel Neville, the Company’s Chief Executive
Officer. “Brady and the Sunburn team are an example of the Cannabis
3.0 lending opportunities that we are excited to finance. This is a
team with prior success in the Florida market that knows how to
scale and operate in cannabis and is focused on building a true
brand. We believe Sunburn is well positioned to continue to take
market share in Florida and benefit from the industry’s transition
to a mainstream consumer packaged goods marketplace.”
“On behalf of the Sunburn team, I am pleased to close these
credit facilities with AFC Gamma as we look to expand our
operations in Florida and beyond. Having a committed capital
provider like AFC Gamma, which is led by a CEO who understands the
industry and the inflection point that we are facing in both
Florida and America, is extremely valuable. This transaction
provides us with the opportunity to shore up our balance sheet,
responsibly scale up our operations in Florida (with or without
recreational use passing), and remain nimble enough to play offense
in enhancing Sunburn as we await potential catalyst moments,”
stated Brady Cobb, CEO of Sunburn.
AFCG will hold the entire $34.0 million across
the two credit facilities, which together consist of a first-lien
term loan secured by all assets of Sunburn. AFC Agent LLC served as
Agent for this transaction.
About AFC Gamma, Inc.AFC Gamma, Inc. (NASDAQ:AFCG) is a
publicly-traded, institutional lender that originates, structures
and underwrites loans secured by commercial real estate and other
types of financing solutions. AFC Gamma targets direct lending and
bridge loan opportunities typically ranging from $5 million to $100
million across multiple real estate sectors, with a specialization
in lending to state-law compliant cannabis operators. It is based
in West Palm Beach, Florida.
About Sunburn CannabisSunburn Cannabis is the brand created by
Florida-based Sunburn Holdings, LLC, which was created to build the
authentic ultra-premium southern cannabis brand that celebrates
America's rebellious, rock n roll, free spirit as well as cannabis
culture. The Sunburn Cannabis brand is based on the true story of
CEO and Founder, Brady Cobb, and his late father, Clyde Walton
"Bill" Cobb, who was one of the largest cannabis smugglers in the
1970s and 1980s until the DEA task force dubbed “Operation Sunburn”
put him in jail. Sunburn incorporates the culture and traditions
passed down from its founders, employing a team that is passionate
about the plant and cultivating only the highest quality product.
For more information, visit www.sunburncannabis.com.
Forward-Looking StatementsThis news 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,
financial performance and market developments. All statements
other than historical facts, are forward-looking statements. Words
such as “believes,” “expects,” “will,” “intends,” “plans,”
“guidance,” “estimates,” “projects,” “anticipates,” and “future” or
similar expressions are intended to identify forward-looking
statements. These forward-looking statements are subject to
the inherent uncertainties in predicting future results and
conditions and are not guarantees of future performance, conditions
or results. Certain factors, risks and uncertainties
discussed under the caption “Risk Factors” and elsewhere in AFC
Gamma’s most recently filed periodic reports on Form 10-K and Form
10-Q and subsequent filings, could cause actual results and
performance to differ materially from those projected in these
forward-looking statements.
AFC GAMMA, INC. INVESTOR CONTACT:
Robyn Tannenbaum561-510-2293
ir@advancedflowercapital.comwww.afcgamma.com
AFC GAMMA, INC. MEDIA CONTACT:
Collected StrategiesJim Golden / Jack Kelleher / Taylor
Koeddingafcg-cs@collectedstrategies.com
______________________
1 Based on Office of Medical Marijuana Use (OMMU) weekly update
reports year-to-date through March 22, 2024.
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