The Institutional Provider of Capital to the Cannabis Industry

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

AFC Gamma. Our premier commercial finance 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 unit holders annually and a 20% Qualified Business Income Deduction, REITs can typically generate more and higher-yielding (taxable) cash flow to their investors.

Why AFC Gamma

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.

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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 June 30, 2021 of 344 potential deals, only 18 made it to funding or commitment, with 65 under further review.

Partnership

We aim to develop long-lasting relationships with our borrowers and investors. We believe that AFC Gamma’s institutional approach to structuring deals and 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.

$6.7

Bn of transactions
sourced

From January 1, 2020 through June 30, 2021

$225

Million of
deals committed

Industry Highlights

The United States retail cannabis market is expected to generate between $22.0 and $36.4 billion in total sales for 2021.  The annual U.S. retail cannabis sales were also projected to rise to between approximately $38.4 billion and $45.9 billion by 2025 (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: 2021 Marijuana Business Daily.
(2) Source: 2019 Marijuana Business Factbook

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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