An affiliate of Advanced Flower Capital Management arranged a $42 million credit facility for Nature’s Medicines. The credit facility is designed to streamline Nature’s Medicines’ capital structure and support its expansion initiatives, which include growth in its home state of Arizona and expansion into the Michigan market.
The Advanced Flower Capital Management affiliate will hold $32 million of the credit facility, with the remaining $10 million syndicated to a third party. The financing facility consists of a first-lien term loan that can be drawn upon over the course of a one-year period. The loan will be secured by first-lien mortgages on Nature’s Medicines’ wholly owned properties and other commercial-security interests. Advanced Flower Capital Management served as lead arranger and administrative agent for the transaction.
“Over the past six months, we have worked closely with the management team at Nature’s Medicines to promote the presence of the company in the institutional markets and position it as one of the top multi-state operators in the United States,” Leonard M. Tannenbaum, CEO of Advanced Flower Capital Management, said. “We are excited to partner with Nature’s Medicines to help catalyze the next phase of the company’s growth, building upon its existing strong operations.”
Founded in Arizona in 2013, Nature’s Medicines is a multi-state vertically integrated cultivator and retailer of both medical and adult-recreational-use cannabis across Arizona, Connecticut, Massachusetts, Maryland, Michigan and Pennsylvania.
“I am very excited to have Advanced Flower Capital as our partner as we continue to expand Nature’s Medicines multi-state presence,” Jigar Patel, CEO of Nature’s Medicines, said. “We were very impressed with AFC’s cannabis-industry expertise, along with their flexibility in tailoring a solution that met our needs. We look forward to working together with AFC in achieving our objectives.”
Advanced Flower Capital Management is an institutional lender to cannabis companies.