The facility will provide capital to complete the build out of Organic Remedies’ cultivation and processing facility, as well as for additional dispensaries under its clinical registrant medical marijuana license.
AFC will hold $22 million of the credit facility, which 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 Organic Remedies’ wholly owned real estate properties and other commercial-security interests. AFC Management served as lead arranger and administrative agent for the transaction.
“Having seen several recent acquisitions of cannabis operators in the state of Pennsylvania, we believe that Pennsylvania is finally being recognized by industry providers as one of the leading medical cannabis markets in the United States,” Leonard M. Tannenbaum, CEO of AFC, said. “We are excited to partner with Organic Remedies as they leverage their agricultural expertise to support what will be one of the largest cultivators in Pennsylvania.”
“I am very excited to have AFC Gamma as our partner to help build upon our strong operations and catalyze the next phase of the company’s growth as we seek to be a premier vertically-integrated provider in Pennsylvania. We were very impressed with AFC’s institutional approach, cannabis-industry expertise as well as their flexibility and speed of execution to complete a transaction. We look forward to working together with AFC to achieve our objectives,” Mark Toigo, CEO of Organic Remedies, said.
AFC Gamma is an institutional lender to cannabis companies.