AFC funds $15 million credit for Story’s Ohio cannabis growth

WEST PALM BEACH, Fla. - Advanced Flower Capital Inc. (NASDAQ:AFCG), also known as AFC, a cannabis-focused real estate investment trust currently trading near its InvestingPro Fair Value, has provided a $15 million senior secured credit facility to Story of Ohio LLC, a subsidiary of Story Companies, which is a multi-state operator in the cannabis industry. The funding, announced today, is aimed at supporting Story’s expansion of its dispensary footprint in Ohio. With a market capitalization of approximately $192 million, AFC stands out for its impressive 15.1% dividend yield.

The credit facility by AFC is structured as a first-lien term loan, secured by all of Story of Ohio’s assets, including cannabis licenses and owned real estate in Ohio and Georgia. The latter serves as additional collateral initially. AFC Agent LLC acted as the agent for the transaction. According to InvestingPro data, AFC maintains a strong liquidity position with a current ratio of 5.09, indicating robust ability to manage such lending operations.

Daniel Neville, CEO of AFC, expressed confidence in Story’s capability to execute in the volatile cannabis market, citing the company’s leadership and track record. Jason Vedadi, CEO of Story, acknowledged the partnership with AFC as a strategic move that aligns with their growth vision and enables them to capitalize on market opportunities in Ohio.

AFC, based in West Palm Beach, Florida, specializes in providing institutional loans to cannabis operators that are compliant with state laws in the U.S. The firm manages loans ranging from $10 million to over $100 million, typically backed by real estate assets, license value, and cash flows.

Story Companies is an emerging multi-state operator in the cannabis sector, focusing on developing and acquiring vertically integrated cannabis assets. It targets states with high growth potential and favorable market conditions for adult-use cannabis sales.

The press release also contained forward-looking statements regarding market expansion and borrower activity, which are subject to risks and uncertainties that could cause actual results to differ materially.

This financial move is part of AFC’s broader strategy to support the growth of compliant cannabis operators in the U.S. market. The information in this article is based on a press release statement from Advanced Flower Capital Inc.

In other recent news, Advanced Flower Capital Inc. secured a $40 million unsecured revolving credit facility. The agreement, arranged with AFC Finance, LLC, allows the company to borrow, repay, and redraw funds under the specified terms. The credit facility carries an 8.00% per annum interest rate and is set to mature on December 31, 2025. This financial move is part of Advanced Flower Capital’s broader strategy to secure flexible financing options, providing the company with financial agility to pursue its operational objectives.

Meanwhile, Compass Point adjusted their outlook on Advanced Flower Capital, raising the price target to $10.00 from the previous $9.00, while retaining a Neutral rating on the stock. This revision reflects the firm’s view of the company’s potential for earnings growth following strategic financial activities. Advanced Flower Capital has been actively managing its loan portfolio, as evidenced by significant financial transactions in the third quarter, and continued financial activities post-quarter.

These are the latest developments for Advanced Flower Capital, demonstrating the company’s active financial management and strategies for future growth.

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