AFC Gamma Provides Bloom Medicinals with $82.5 Million Senior Secured Credit Facility
April 21st, 2022
News, Top News
Funding will allow Bloom to Scale Operations and Acquire Cultivation License in Ohio
WEST PALM BEACH, Fla., April 21, 2022 (GLOBE NEWSWIRE) — AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma”) today announced that it has provided a senior secured credit facility of up to $82.5 million to Bloom Medicinals Holding Company and certain of its affiliates (“Bloom”), 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,” said Leonard M. Tannenbaum, AFC Gamma’s Chief Executive Officer. “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.”
“We are pleased to have partnered with AFC Gamma to strengthen our balance sheet as we enter our next phase of growth,” said Nicole Stark, Chief Executive Officer of Bloom. “This is our third transaction with AFC Gamma and we are pleased to continue with them as our lender, given their flexibility and creativity in structuring a loan to meet our ever changing needs. AFC Gamma was there to support the growth of our business in a time when traditional lenders could not understand the nuances in the cannabis industry. We look forward to utilizing this latest financing to expand our business and provide high-quality medical products to our growing patient community.”
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.
About AFC Gamma
AFC Gamma, Inc. (NASDAQ:AFCG) is an institutional lender that provides a range of lending solutions to established operators in the cannabis industry. AFC Gamma originates, structures and underwrites senior secured loans and other types of financing to operators in states that have legalized medicinal and/or adult-use cannabis. AFC Gamma’s senior management team has over 100 years of combined experience in investment management and disciplined credit investing across a range of economic cycles.
About Bloom Medicinals Holding Company
Based in Boca Raton, Florida, Bloom owns and operates multiple medical cannabis businesses throughout the United States. With an active presence in Ohio, Missouri, New Jersey and Florida, Bloom has become one of the most recognizable brands and multi-state cannabis business license holders in the medical marijuana industry.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that reflect AFC Gamma’s current views and projections with respect to, among other things, future events and financial performance. Words such as “believe,” “expect,” “will,” “intend,” “plan,” “estimate,” “project,” and “anticipate” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements regarding (i) Bloom’s expansion and growth strategies, and AFC Gamma’s role in such growth; and (ii) Bloom’s operations and use of proceeds, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of AFC Gamma’s manager to monitor and actively manage AFC Gamma’s loan portfolio and implement its investment strategy; the demand for cannabis cultivation and processing facilities; and other factors discussed under the caption “Risk Factors” and elsewhere in AFC Gamma’s Annual Report on Form 10-K filed on March 10, 2022, could cause actual results and performance to differ materially from those projected in these forward-looking statements. AFC Gamma does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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