Advanced Flower Capital Inc. expands credit facility to $50 million for cannabis loans and corporate purposes.
Quiver AI Summary
Advanced Flower Capital Inc. (AFC) announced the expansion of its senior secured revolving credit facility to $50 million, with an additional $20 million from its banking partner. This funding will enable AFC to support existing borrowers, finance commercial loans to cannabis operators, and cover general corporate needs. The facility has the potential to grow to $100 million, depending on lender involvement and borrowing capacity. AFC’s CFO, Brandon Hetzel, highlighted the importance of this partnership in strengthening their lending capabilities. Advanced Flower Capital is a commercial mortgage REIT focused on providing loans to compliant cannabis businesses across the U.S.
Potential Positives
- Expansion of the senior secured revolving credit facility to $50 million, including an additional $20 million commitment, enhances AFC's financial capacity.
- This credit facility reinforces AFC's relationships with major banking partners, indicating trust and support from financial institutions.
- The ability to expand the facility to $100 million provides AFC with additional flexibility for future financing and growth opportunities.
- Strategic use of the Credit Facility to support lending to cannabis operators aligns with AFC's investment strategy and market position as a leader in the commercial mortgage REIT sector.
Potential Negatives
- The announcement of an expanded credit facility may signal that the company requires additional financing to manage its obligations, which could indicate underlying financial challenges.
- The reliance on a senior secured revolving credit facility highlights the company's dependency on external funding, raising concerns about its cash flow stability.
- The forward-looking statements include numerous uncertainties, underscoring potential risks related to the company's ability to execute its investment strategy and manage its loan portfolio effectively.
FAQ
What is the amount of the expanded credit facility announced by Advanced Flower Capital Inc.?
The expanded credit facility is increased to $50 million with an additional $20 million commitment.
Who is the Lead Arranger for the credit facility?
The Lead Arranger is an FDIC-insured bank with over $75 billion in assets.
What purposes will AFC use the credit facility for?
AFC will use the facility to fund commitments to borrowers, commercial loans, and working capital.
How much can the credit facility be expanded to?
The facility remains expandable to $100 million, subject to lender participation.
What type of loans does Advanced Flower Capital Inc. provide?
AFC provides institutional loans to state law compliant cannabis operators in the U.S.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$AFCG Insider Trading Activity
$AFCG insiders have traded $AFCG stock on the open market 8 times in the past 6 months. Of those trades, 8 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $AFCG stock by insiders over the last 6 months:
- LEONARD M TANNENBAUM has made 2 purchases buying 82,007 shares for an estimated $518,685 and 0 sales.
- DANIEL NEVILLE (Chief Executive Officer) has made 4 purchases buying 56,599 shares for an estimated $362,325 and 0 sales.
- ROBYN TANNENBAUM (President and CIO) has made 2 purchases buying 8,000 shares for an estimated $49,680 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$AFCG Hedge Fund Activity
We have seen 33 institutional investors add shares of $AFCG stock to their portfolio, and 61 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- TIDAL INVESTMENTS LLC removed 514,497 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $2,865,748
- DEERFIELD MANAGEMENT COMPANY, L.P. (SERIES C) removed 191,162 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $1,592,379
- RENAISSANCE TECHNOLOGIES LLC removed 105,800 shares (-44.5%) from their portfolio in Q1 2025, for an estimated $589,306
- DEUTSCHE BANK AG\ added 67,478 shares (+449.6%) to their portfolio in Q1 2025, for an estimated $375,852
- O'SHAUGHNESSY ASSET MANAGEMENT, LLC removed 66,499 shares (-44.7%) from their portfolio in Q1 2025, for an estimated $370,399
- RITHOLTZ WEALTH MANAGEMENT removed 66,060 shares (-65.0%) from their portfolio in Q1 2025, for an estimated $367,954
- BLACKROCK, INC. added 58,391 shares (+3.5%) to their portfolio in Q1 2025, for an estimated $325,237
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
WEST PALM BEACH, Fla., June 09, 2025 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq: AFCG) (“AFC”) today announced that it has expanded its senior secured revolving credit facility (“Credit Facility”) to $50 million with an additional $20 million commitment from the facility’s Lead Arranger, an FDIC-insured bank with over $75 billion of assets. AFC intends to use availability under the Credit Facility to fund commitments to existing borrowers, originate and participate in commercial loans to cannabis operators in line with its investment strategy, and support working capital and other general corporate purposes. The facility remains expandable to $100 million, subject to lender participation and available borrowing base.
“This expanded commitment from a long-standing banking partner underscores the strength of our platform and strategy. This facility remains a core component of our financing approach, and we look forward to further strengthening this partnership as we scale our lending capabilities,” said Brandon Hetzel, AFC’s Chief Financial Officer.
About Advanced Flower Capital Inc.
Advanced Flower Capital Inc. (Nasdaq: AFCG) is a leading commercial mortgage REIT that provides institutional loans to state law compliant cannabis operators in the U.S. Through the management team’s deep network and significant credit and cannabis expertise, AFC originates, structures and underwrites loans ranging from $10 million to over $100 million, typically secured by quality real estate assets, license value and cash flows. It is based in West Palm Beach, Florida. For additional information regarding the Company, please visit advancedflowercapital.com .
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. All statements, other than historical facts, are forward-looking statements. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements regarding the anticipated use of the Credit Facility are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our manager to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio, and implement our investment strategy, the demand for cannabis cultivation and processing facilities and dispensaries, management’s current estimates of expected credit losses and current expected credit loss reserves, and other factors, could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in AFC’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of AFC’s most recently filed Annual Report on Form 10-K and subsequent filings. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect AFC. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact
Robyn Tannenbaum
561-510-2293
[email protected]