AFC Gamma : Completion of Acquisition or Disposition of Assets (Form 8-K)
October 04, 2021 at 08:47 am EDT
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Completion of Acquisition or Disposition of Assets.
Reference is made to the Second Amended and Restated Credit Agreement, dated as of September 30, 2021 (the "Credit Agreement"), by and among JG Holdco LLC, as parent and a guarantor ("Justice Cannabis Co."), certain subsidiaries of Justice Cannabis Co., as borrowers (collectively, the "Borrowers"), the other guarantors from time to time party thereto, AFC Gamma, Inc. (the "Company"), as a lender, A BDC Warehouse, LLC (the "Warehouse"), as a lender and as documentation agent, AFC Management, LLC ("AFCM"), as agent for the lenders under the Credit Agreement (in such capacity, the "Agent"), and the other lenders from time to time party thereto. The Warehouse is an entity beneficially owned by Leonard M. Tannenbaum, a director of the Company and its Chief Executive Officer, and Robyn Tannenbaum, the Company's Managing Director, Head of Origination and Investor Relations. AFCM is the external manager of the Company and is beneficially owned by Mr. Tannenbaum, Mrs. Tannenbaum, other members of the Tannenbaum family and Jonathan Kalikow, a director of the Company and its Head of Real Estate.
On September 30, 2021, the Companyentered into the Credit Agreement with the Warehouse, the Borrowers and the Agent, which increased the Borrowers' existing senior secured credit facility, from $22.0 million to $75.4 million in total commitments (the "Expanded Credit Facility"). Under the Expanded Credit Facility, the Company's total loan commitments to the Borrowers under the Credit Agreement increased to an aggregate principal amount of $65.4 million, among three tranches. The remaining $10.0 million was syndicated to the Warehouse, an affiliate of the Company. The Expanded Credit Facility is secured by a first-lien mortgage on the Borrowers' owned real-estate in New Jersey and Pennsylvania and other commercial-security interests of the Borrowers.
Financial Statements and Exhibits.
(a) Financial statements of businesses or funds acquired.
No financial statements are being filed with this report. Any required financial statements in connection with the transactions described in Item 2.01 will be filed by amendment pursuant to Item 9.01(a)(3) within 71 calendar days after the date on which this Current Report on Form 8-K is required to be filed.
(b) Pro forma financial information.
No pro forma financial information is being filed with this report. Any required pro forma financial information in connection with the transactions described in Item 2.01 will be filed by amendment pursuant to Item 9.01(b)(2) within 71 calendar days after the date on which this Current Report on Form 8-K is required to be filed.
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AFC Gamma Inc. published this content on 04 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 October 2021 12:44:31 UTC.
AFC Gamma, Inc. is an institutional lender to the commercial real estate sector. The Company primarily originates, structures, underwrites, invests in and manages senior secured loans and other types of commercial real estate loans and debt securities, with a specialization in loans to cannabis industry operators in states that have legalized medical and/or adult-use cannabis. The Companyâs objective is to provide attractive risk-adjusted returns over time through cash distributions and capital appreciation primarily by providing loans to real estate developers and state-law compliant cannabis companies. The loans it originates are primarily structured as senior loans secured by real estate, equipment, value associated with licenses (where applicable) and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. The Company targets investing strategically across multiple real estate sectors.