Advanced Flower Capital Inc.: Key player in cannabis financing – MEDCAN24

Advanced Flower Capital Inc., formerly AFC Gamma, Inc., a leading institution lender specializing on the cannabis sector. The company is primarily focused on structuring, underwriting and managing secured senior loans for cannabis businesses in the United States. The strategic approach to capital provides cannabis companies with the essential funds they need for growth and expansion in this fast-evolving sector. 

Recent developments

• Purchase of stock by the CEOCEO Neville Daniel recently purchased 5,000 shares in AFCG at $6.20 a share for a total investment of $31,000. His total stock holdings increased to 182,261 as a result of this purchase, indicating he has a high level of confidence in the future prospects for AFCG. 

• Financial PerformanceAFCG’s earnings per share for the fourth quarter of 2024 were $0.29 versus $0.3683 expected. Revenues were $7.64mil, lower than the anticipated $11.59mil. This was due to defaults of three loans worth $144,000,000, which represented 36.3% AFCG’s investment balance. As a result, the dividend was reduced by 30% per share to $0.23. 

Positioning and Market Outlook

Despite recent financial difficulties, AFCG still maintains a high liquidity level, as current assets are 3.6x greater than short-term debt. Dividend yield is a very attractive 14.7%. Jefferies lowered the rating of Citizens JMP from Market Perform to Buy due to uncertainty regarding credit. AFCG remains focused on strategic capital investment, acquiring a strong pipeline of possible deals aimed to stabilizing and enhancing the company’s loan portfolio.