AFC Gamma, Inc. (NASDAQ:AFCG) has provided a senior secured credit facility of up to $82.5 million to Bloom Medicinals Holding Company and certain of its affiliates, a privately held multi-state cannabis operator with licenses in Missouri, New Jersey and Ohio. Bloom intends to use the proceeds from the new credit facility to repay existing debt, fund expansion initiatives, acquire a level 1 cultivation license in Ohio and provide additional working capital.
“We are excited to support Bloom’s business as they acquire a level 1 cultivation license in Ohio, which coupled with their five existing dispensaries gives them a vertical presence in Ohio, a state that we believe has an attractive medical cannabis program. This acquisition allows their business operations to be vertically integrated in both Ohio and Missouri,” stated Leonard M. Tannenbaum, AFC Gamma’s CEO. “Additionally, we are pleased to continue our long-standing relationship with Bloom, by refinancing two outstanding loans to them and providing growth capital in this third loan. This relationship is a prime example of our ability to support our client’s expansion and grow with them over time.”
AFC Gamma has committed $82.5 million under Bloom’s senior secured credit facility. The facility is secured by first-lien mortgages on Bloom’s owned real estate properties and other commercial security interests. AFC Agent LLC served as Agent for the transaction.
Photo: Courtesy of Giorgio Trovato on Unsplash
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