AFC Gamma Aims To Become Second Cannabis-Focused REIT On Major Exchange With IPO

AFC Gamma, a real estate finance enterprise, plans to go public on the Nasdaq as a REIT and trade under the ticker symbol “AFCG,” according to New Cannabis Ventures.

Seaport Global Securities, JMP Securities and Ladenburg Thalmann were appointed as underwriters.

According to the outlet, AFC Gamma hopes to raise up to $115 million, and if it succeeds it will become the second REIT focused solely on cannabis to list on a big exchange, with the first being Innovative Industrial Properties (NYSE: IIPR).

AFC Gamma raised $80 million over the summer, and has recently sold $12.3 million in equity and $125,000 in Series A cumulative Non Voting Preferred Stock, according to New Cannabis Ventures. 

The IPO preliminary prospectus reveals AFC Gamma has funded $82.5 million in loans, while also having commitments for an additional $19.8 million.

While no borrowers were disclosed in the prospectus, the company noted that the loans and pending loans are in connection with four private and three public companies.

AFC Gamma has revealed transactions with the private company Nature’s Medicines, and the public ones Bluma Wellness (OTC: BMWLF) and Curaleaf (OTC: CURLF), according to the Monday report.