AFC Gamma and Viridescent Realty Trust amend $150 million credit facility for Acreage Holdings
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Lenders revise credit facility to provide access to acreage for up to an additional $50 million
WEST PALM BEACH, Fla., Oct. 25, 2022 (GLOBE NEWSWIRE) — AFC Gamma, Inc. (NASDAQ: AFCG) (“AFC Gamma”) today announced that it has amended its previously announced $100 million credit facility with Acreage Holdings, Inc. (“Acreage”) (CSE: ACRG.AU, ACRG.BU), (OTCQX : ACRHF, ACRDF), a vertically integrated, multi-state operator of cannabis cultivation and retail facilities in the United States (the “Modified Credit Facility”).
Under the amended credit facility, an additional $25 million is now available for immediate drawdown by Acreage, and an additional $25 million is available in future periods under a committed accordion option at the achievement of certain predetermined milestones. The terms of these additional drawdowns replace the old $50 million accordion option. The amended credit facility now includes a variable interest rate equal to the US prime rate (“prime”) plus 5.75% per annum, payable monthly in arrears, with a prime floor of 5.50%. Acreage intends to use the proceeds to fund expansion initiatives and provide additional working capital.
“AFC Gamma is committed to providing the capital necessary to support the expansion of our portfolio companies in key states to drive growth,” said Leonard Tannenbaum, Chairman and CEO of AFC Gamma. “Acreage has a proven track record as a strong and capable operator well suited for long-term success. AFC is proud to strengthen its partnership with Acreage as we provide additional funding to achieve their growth goals as they continue to make their mark in the North East region.
Steve Goertz, Chief Financial Officer of Acreage, added, “The amended terms of the credit facility align with current market conditions and will allow Acreage to strengthen our balance sheet as we expand our core footprint, particularly in the Northeast. This capital injection comes at an opportune time as we elevate our cultivation and wholesale capabilities in New Jersey and solidify our presence in the upcoming adult markets of Connecticut and New York. We are delighted that AFC Gamma and Viridescent continue to show their confidence in our growth potential and remain valued partners.
AFC Gamma has committed up to $90 million under the amended credit facility, with an additional commitment of up to $15 million syndicated to an affiliate and the remaining $45 million committed by Viridescent Realty Trust, Inc. (“Viridescent”). The facility is secured by first ranking mortgages on Acreage’s real estate properties and other commercial security interests.
About AFC Gamma, Inc.
AFC Gamma, Inc. (NASDAQ: AFCG) is an institutional lender that offers 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 operator financing in states that have legalized medical and/or adult cannabis. AFC Gamma’s management team has over 100 years of combined experience in investment management and disciplined credit investing through a range of economic cycles.
About Viridescent Realty Trust, Inc.
Viridescent is a commercial real estate finance company focused on originating, structuring, underwriting and servicing senior secured loans for established companies operating in the cannabis industry. With over 25 years of first-hand experience in the cannabis industry coupled with 75 years of combined experience in private lending, home lending, retail, real estate acquisitions and development, investment advisory , risk management and advisory, Viridescent’s extensive knowledge and network in the cannabis industry positions it as a strategic and valuable partner to provide customized and industry-tailored financing solutions.
About Acreage Holdings, Inc.
Acreage is a multi-state operator of cannabis cultivation and retail facilities in the United States, including its national brand of retail stores, The Botanist. With its primary address in New York, Acreage’s wide range of cannabis products available nationally and regionally includes award-winning The Botanist brand, craft brand Superflux, Tweed brand, Prime medical brand in Pennsylvania, Innocent brand in Illinois and others. . Acreage also owns Universal Hemp, LLC, a hemp subsidiary dedicated to distributing, marketing, and selling CBD products across the United States. Since its founding in 2011, Acreage has focused on building and scaling operations to create a seamless, consumer-centric brand experience. . Learn more about www.acreageholdings.com and follow us on Twitter, LinkedIn, instagramand Facebook.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the company’s current beliefs and projections regarding, among other things, future events and Acreage’s expected expansion and financial performance. 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 uncertainties inherent in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, risks and uncertainties discussed under “Risk Factors” and elsewhere in AFC Gamma’s most recent periodic reports filed on Forms 10-K and 10-Q and subsequent filings could cause actual results and performance to differ materially. of those projected in these forward-looking statements.
AFC GAMMA, INC. MEDIA CONTACT:
VIRIDESCENT REALTY TRUST, INC. CONTACT :
ACREAGE HOLDINGS, INC.
Steve Goertz, Chief Financial Officer