AFC Gamma has provided a credit facility of $23 million to BeLeaf Medical. The credit facility is designed to provide BeLeaf with the capital necessary to expand its three Missouri cultivation facilities in Lakefront, Jonesburg and Cherokee, as well as purchase the Jonesburg cultivation facility. The company has nearly completed construction on ~25,000 square feet of canopy between its locations and plans to add an additional ~16,000 square feet.
“We are pleased to support BeLeaf as they ramp up their production capabilities in the growing Missouri market,” said Leonard M. Tannenbaum, AFC’s Chief Executive Officer. “The management team possesses extensive and diverse expertise, and as one of the early entrants to this market, we believe BeLeaf is well-positioned to utilize its first-mover status to take advantage of the many opportunities in the state. We look forward to supporting BeLeaf’s continued progress as they execute on their strategic plans.”
“As we continue our expansion in Missouri, we are excited to have the support and expert partnership of AFC Gamma,” said Kevin Riggs, President of BeLeaf Medical, adding, “At BeLeaf, we are steadfast in our production of high-quality flower and the development of innovative, best-in-class products resulting in remarkable growth and impressive customer loyalty. We look forward to bringing our exceptional products and brands to consumers in new markets, as this has been our highest priority every time we looked towards expansion. That same commitment to quality and service that we pride ourselves on everyday will continue as we enter this growth trajectory.”
Tom Muzzey, Chief Executive Officer of BeLeaf, added, “AFC Gamma is one of the few lenders in the cannabis industry that not only understands our business model, but has significant experience financing construction buildouts which play a foundational role in our growth strategy. Their flexibility, partnership mentality and speed of execution has been a gamechanger for us, and we look forward to continuing to work with them as we grow our business.”
AFC will hold the entire $23 million credit facility, which consists of a first-lien term loan. The loan will be secured by a first-lien mortgage on BeLeaf’s Jonesburg facility, once purchased, and other commercial-security interests. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction.