Institutional Financing Solutions for Quality Cannabis Companies

Advanced Flower Capital (AFC Gamma) is a premier provider of institutional real-estate loans to high-quality cannabis companies nationwide in all aspects of production: cultivation, processing, and distribution. We offer mortgage loans and related facilities, generally secured by substantial assets which rely on a repeatable process that screens for creditworthy, high-profile borrowers. AFC Gamma supports all aspects of production: cultivation, processing, and distribution. With years of combined lending expertise and real-estate experience, AFC Gamma’s principals are now focused on the exponential growth of the cannabis industry.

AFC Gamma. Our premier mortgage REIT blends cash flow and real-estate underwriting.

The Advantages of a REIT

AFC Gamma is a real-estate investment trust which gives investors access to income generating commercial real estate investments. Not only is a real-estate vehicle appropriate for a real-estate lender, but a REIT offers investors several benefits. It’s income-oriented, with REIT participants eligible for a steady stream of distributions. And since REITs earn their tax exemption by distributing at least 90% of their income to unitholders annually and a 20% Qualified Business Income Deduction, REITs can generate more and higher-yielding (taxable) cash flow to their investors.

Why AFC

The interest in the development of cannabis-based therapies and consumer products cannot be denied. However, while cannabis can be an appealing investment, the federal landscape is uncertain from a regulatory standpoint. Policies governing cannabis vary across the country and every state is different with regard to regulation, license requirement, and supply / demand dynamic. As a result of our rigorous diligence, not all operators qualify for financing. Potential investors as well as companies in the cannabis space deserve the highest quality when selecting an institutional lender. We believe that AFC Gamma stands out.

why_AFC_image

Rigor

Our multi-step underwriting process is highly selective and attuned to investing in opportunities with attractive risk-adjusted returns while securing collateral to manage downside risk. As of September 1, 2020, AFC Gamma was presented with 131 potential deals. We passed on 97 opportunities, funded 6 deals and committed to an additional 3.

Partnership

We aim to develop long-lasting relationships with our borrowers and investors. AFC Gamma’s institutional approach to structuring deals and sterling reputation for building relationships, fills the void left by a lack of financing in the cannabis space making it more likely for our partnerships to succeed.

Growth

We structure loans to meet our borrower’s needs. This customized approach means that AFC Gamma can grow and expand our partnerships, which benefits our borrowers as well as our investors. A well-tailored deal is more apt to deliver strong returns.

$3

Bn of transactions
sourced

As of September 1, 2020

$105

Million of
deals committed

Industry Highlights

The United States retail cannabis market is expected to generate between $15.5 and $18.9 billion by the end of 2020, an increase of approximately 40% over 2019. Total U.S. sales could rise as high as $37 billion by 2024 (1).

Key Market Drivers

  • Rising demand from consumers for therapies and products derived from cannabis
  • Increasing positive legislation in support of cannabis
  • Wide range of benefits for both medical and recreational use
  • Growing medical use

Market Opportunities

  • U.S. cannabis industry is estimated to have a total annual economic impact of greater than $90 billion by 2023 (1)
  • Interest-bearing loans as a type of investment in the cannabis industry increased to 37% in 2019 from 22% in 2017 (2)

(1) Source: 2020 Marijuana Business Factbook. Estimate includes the launch of new businesses, taxes, real estate investments, visiting tourists, and cannabis industry employees circulating earnings back into the economy 
(2) Source: 2019 Marijuana Business Factbook

Greenhouse in Florida

Indoor Cultivation in Arizona

Greenhouse Cultivation in Arizona

LEADERSHIP

AFC Gamma is proud of the leading industry experts and management team we’ve assembled whose backgrounds are directly related to generating cash flow and real-estate lending. Meet our senior-level executives; see full team here.

Leonard M. Tannenbaum

Leonard M. Tannenbaum

Partner & CEO, AFC Gamma

Robyn Tannenbaum

Robyn Tannenbaum

Partner, Head of Origination and Investor Relations

Jonathan Kalikow

Jonathan Kalikow

Partner, Head of Real-Estate

Please contact us for additional information about AFC Gamma and the solutions we can deliver for you.

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