AFC Gamma is offering Justice Hashish Co. with a $ 22 million senior secured credit score facility to fund its New Jersey MJNews growth
FLORIDA: AFC Gamma, Inc. announced that Justice Cannabis Co., a Chicago-based multi-state operator with licenses in eight states, has been granted a $ 22 million credit facility. The facility is designed to provide Justice Cannabis Co. with the capital needed to purchase and complete the 72,000 square foot grow and processing facility and build a pharmacy in Ewing, New Jersey.
“We are excited to support Justice Cannabis Co. as it continues to expand its New Jersey operations,” said Leonard M. Tannenbaum, chief executive officer of AFC. “With adult marijuana recently legalized in the state, we believe New Jersey will see favorable supply and demand dynamics in the years to come, and we look forward to working with Justice Cannabis Co. to take full advantage of this growing market.”
Jon Loevy, Founder of Justice Cannabis Co. added, “As we continue to expand our presence in this highly attractive cannabis market, we are delighted to have AFC’s support and partnership. AFC has demonstrated its investment expertise in the cannabis space by providing us with an institutional funding solution that supports our specific needs. We look forward to continuing to work with AFC to achieve our goals. “
AFC will hold the entire $ 22 million of the credit facility, which consists of a fixed term loan. The loan is backed by mortgages on Justice Cannabis Co.’s wholly owned New Jersey real estate and other commercial security interests. AFC Management, LLC acted as lead arranger and administrative agent for the transaction.
New Jersey cannabis snapshot
New Jersey legalized the use of medical marijuana in 2010 and started selling it in 2019. Adult marijuana was legalized in 2021. The state expects sales between $ 850 million and $ 950 million by 2024, with significant opportunities to exceed that range. depending on the license details developed over time.