AFC Gamma provided a credit facility of $22 million to Justice Cannabis, a Chicago-based, multi-state operator with licenses in eight states. The credit facility was designed to provide Justice Cannabis with the capital necessary to purchase and complete the build-out of its 72,000 square foot cultivation and processing facility and the build-out of a dispensary. Both facilities will be in Ewing, NJ.
“We are pleased to support Justice Cannabis Co. as it continues to expand its operations in New Jersey,” Leonard M. Tannenbaum, CEO of AFC Gamma, said. “With adult use marijuana recently legalized in the state, we believe New Jersey will have favorable supply and demand dynamics for years to come and we are excited to be working with Justice Cannabis Co. in order to fully capitalize on this growing market.”
“As we continue building on our presence in this highly attractive cannabis market, we are very excited to have the support and partnership of AFC,” Jon Loevy, founder of Justice Cannabis, said. “AFC has proven investment expertise in the cannabis space and provided us with an institutionally minded financing solution that supports our specific needs. We look forward to continuing to work with AFC to achieve our objectives.”
AFC Gamma will hold the entire $22 million of the credit facility, which consists of a first-lien term loan. The loan is secured by a first-lien mortgages on Justice Cannabis’s wholly-owned real estate properties in New Jersey and other commercial-security interests. AFC Management served as lead arranger and administrative agent for the transaction.
AFC Gamma is an institutional lender to cannabis companies.