AFC Gamma, a newly-formed commercial mortgage REIT focused on the cannabis industry, announced terms for its IPO on Wednesday.
The West Palm Beach, FL-based company plans to raise $100 million by offering 5.6 million shares at a price range of $17 to $19. At the midpoint of the proposed range, AFC Gamma would command a fully diluted market value of $214 million. The company plans to issue regular quarterly distributions of all or substantially all of its REIT taxable income.
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. It is expected to price during the week of February 8, 2021.
