AFC Gamma, a real estate investment trust (REIT) based in West Palm Beach, Florida, on Monday filed an S-11 to go public on the Nasdaq, according to a Renaissance Capital report. In a Securities and Exchange Commission filing, the firm indicated plans to raise up to $115 million in an initial public offering.
Since its founding in July to September 30, the company has booked $2 million in revenue, the report says. Formed by Advanced Flower Capital, AFC Gamma originates, structures, underwrites, and manages loans for established companies operating in the cannabis industry in states where cannabis is legal for either medical or recreational purposes. As of December 26, the company had originated and funded $135 million in loans.
According to a New Cannabis Ventures report, the company has a $40 million line of credit.
AFC Gamma has disclosed transactions with privately-held Nature’s Medicines, and publicly-traded firms Curaleaf, and Bluma Wellness. According to the SEC filing, AFC currently has loans and pending loans to four private and three public companies, which are unnamed in the prospectus.
A cannabis-focused REIT, Innovative Industrial Properties, already trades on the New York Stock Exchange under the IIPR symbol. Another NYSE-traded firm, Power REIT (REIT), just recently began funding cannabis operators with sale-leaseback transactions, according to New Cannabis Ventures.
AFC Gamma, which filed to trade under the symbol “AFCG,” has named JMP Securities, Ladenburg Thalmann, and Seaport Global Securities as its underwriters.
In the prospectus, the firm said that as of December 26, its “loan origination pipeline consisted of 34 potential new loans representing anticipated total loan commitments of approximately $485.2 million.”