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Cannabis finance REIT AFC Gamma raises deal size by 19% ahead of $119 million IPO

February 11, 2021

AFC Gamma, a newly-formed commercial mortgage REIT focused on the cannabis industry, raised the proposed deal size for its upcoming IPO on Thursday.

The West Palm Beach, FL-based company now plans to raise $119 million by offering 6.3 million shares at $19. The company had previously filed to offer 5.6 million shares at a range of $17 to $19. At the revised price, AFC Gamma will raise 19% more in proceeds than previously anticipated.

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. Its loans are primarily secured by real property and certain personal property, including licenses, equipment, and other assets.

AFC Gamma was founded in 2020 and booked $2 million in revenue for the 12 months ended September 30, 2020. It plans to list on the Nasdaq under the symbol AFCG. JMP Securities, Ladenburg Thalmann and Seaport Global are the joint bookrunners on the deal.