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May 6, 2021 at 9:11 am
Published by NCV Newswire
Represents AFC Gamma’s First Transaction in Expanding New Jersey Medical and Adult Use Marijuana Market
WEST PALM BEACH, FL, May 06, 2021(Globe Newswire) – AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC”) today announced it has provided a credit facility of $22 million for Justice Cannabis Co. (“JUSTICE CANNABIS CO.”, or the “Borrower”). The credit facility is designed to provide capital to allow Justice Cannabis Co. to purchase and complete the build out of its +/-75,000 square foot cultivation and processing facility and build out its Ewing, NJ dispensary.
“We are pleased to support Justice Cannabis Co., as they seek to build out their operations in New Jersey, a state that is projected to have an extremely favorable supply and demand dynamic, as adult use was recently legalized. We are pleased to make this investment to help Justice Cannabis Co. continue to expand and grow market share in this exciting market,” said Leonard M. Tannenbaum, AFC’s Chief Executive Officer.
Jon Loevy, Justice Cannabis Co. ’s Founder, added, “As we continue building on our presence in this expanding cannabis market, we are very excited to have the support and partnership of AFC Gamma. AFC has proven investment expertise in the cannabis space and provided us with an institutionally-geared financing solution that supported our specific needs. We look forward to continuing to work with AFC to achieve our objectives.”
AFC will hold up to $22 million of the credit facility, which consists of a first-lien term loan. The loan will be secured by first-lien mortgages on Justice Cannabis Co. ’s wholly owned real estate properties in New Jersey and other commercial-security interests. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction.
Based in Chicago, IL, Justice Cannabis Co. is a multi-state operator that holds a portfolio of difficult to obtain licenses across eight states, collectively covering over 106 million people. Justice Cannabis Co. has a New Jersey Alternative Treatment License (“ATC”) license, which is a vertical license that allows for cultivation, processing, manufacturing and dispensing of marijuana. This license allows for the operation of fbuildone cultivation facility and three dispensaries.
New Jersey legalized the use of medical marijuana in 2010, with sales launching in 2019.Adult use marijuana was legalized in 2021. With adult use legalized, Marijuana Business Daily projects 2024 sales at $850 million to $950 million in New Jersey, but the number could well be higher depending on licensing details to be developed later.[1]
About AFC Gamma, Inc.
AFC Gamma, Inc. (NASDAQ:AFCG) is an institutional lender to leading cannabis companies with strong operations and cash-flow prospects, real-estate-security and other collateral, and locations in states with favorable supply/demand fundamentals and legislative environments. AFC’s platform provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans and bridge financings. The senior-management team of the company has a combined approximately 100 years of experience in investment management and disciplined credit investing across a range of economic cycles.
About Justice Cannabis Co.
Justice Cannabis Co. (formerly known as Justice Grown), has been a steady force amongst the U.S cannabis industry for over 7 years and garnered attention for all the right reasons. They are a full-service, vertical cannabis business. They cultivate, manufacturer and distribute high quality cannabis products to a variety of customers, and patients across the United States. Founded on the premise of ‘cannabis made good, that does good to make you feel good.’ the Justice team have a long-standing and impressive reputation for their social justice commitments, quality products, unique dispensaries and a modern approach to service. Through its retail brand, Bloc, offers products and dispensary experiences thoughtfully developed to aid in the daily journey of feeling better. With an expertly curated collection, and an attainable price point, Justice Cannabis Co. continues to garner attention for its growing community of loyal customers.
Justice Cannabis Co. holds multiple licenses across 8 states, including California, Illinois, Pennsylvania, Massachusetts, New Jersey, Michigan, Missouri, and Utah. With over 100 years of combined cannabis experience on the executive team, the company is composed of experienced cannabis professionals and alumni from some of the cannabis industry’s most influential and impactful brands. For more information, visit www.justicecannabisco.com
[1] New Jersey voters legalize a potential billion dollar adult use market (Marijuana Business Daily, November 4, 2020)
AFC GAMMA INVESTOR CONTACT:
Robyn Tannenbaum
561-510-2293
www.afcgamma.com
AFC GAMMA MEDIA CONTACT:
Jim Golden / Scott Bisang / Jack KelleherJoele Frank,
Wilkinson Brimmer Katcher
212-355-4449
Justice Cannabis Co. CONTACT:
For more information, please visit JusticeCannabisCo.com.
For all inquiries and interview opportunities with Justice Cannabis Co.,
Please contact Laureen Stowers – Laureen@JusticeCannabisCo.com
