Renaissance Capital logo

Cannabis finance REIT AFC Gamma files for a $115 million IPO

December 28, 2020

AFC Gamma, a newly-formed REIT that provides loans to companies in the cannabis industry, filed on Monday with the SEC to raise up to $115 million in an initial public offering.

Formed by Advanced Flower Capital, AFC Gamma originates, structures, underwrites, and manages 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 of December 26, 2020, the company had originated and funded $135 million in loans. The company's loans are primarily secured by real property and certain personal property, including licenses, equipment, and other assets.

The West Palm Beach, FL-based company was founded in 2020 and booked $2 million in revenue from inception to September 30, 2020. It plans to list on the Nasdaq under the symbol AFCG. AFC Gamma filed confidentially on November 20, 2020. JMP Securities, Ladenburg Thalmann and Seaport Global are the joint bookrunners on the deal. No pricing terms were disclosed.