AFC Gamma, a new commercial mortgage REIT focused on the cannabis industry, announced the terms of its IPO on Wednesday.
The West Palm Beach, Florida-based company plans to raise $ 100 million by offering 5.6 million shares at a price range of $ 17-19. In the middle of the proposed range, the AFC Gamma would have a fully diluted market value of $ 214 million. The Company plans to issue regular quarterly distributions of all or substantially all of its taxable REIT income.
Formed by Advanced Flower Capital, AFC Gamma creates, structures, underwrites and manages senior secured loans and other types of loans for established companies operating in the cannabis industry in states that have legalized cannabis for medical use. and / or adult. Its loans are mainly secured by real estate and some personal property, including licenses, equipment and other assets.
AFC Gamma was founded in 2020 and reported sales of $ 2 million for the 12 months ended September 30, 2020. It expects to be listed on Nasdaq under the symbol AFCG. JMP Securities, Ladenburg Thalmann and Seaport Global are the associated bookkeepers of the transaction. Its price is expected during the week of February 8, 2021.
The article Cannabis funding REIT AFC Gamma sets terms for $ 100 million IPO originally appeared on the renaissancecapital.com website of IPO investment manager Renaissance Capital.
Disclosure of investments: The information and opinions expressed in this document have been prepared by Renaissance Capital research analysts and do not constitute an offer to buy or sell any securities. Renaissance capital Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of the companies mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.