AFC Gamma Provides FarmaceuticalRX with Senior Secured Credit Facility of up to $21 Million to Fund Its Ohio Expansion

Highlights AFC Gamma’s Second Transaction to Growing Ohio Medical Marijuana Market

AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC”) today announced it has provided a credit facility of up to $21 million for FarmaceuticalRX LLC (“FarmRX”, the “Company”, or the “Borrower”). The credit facility is designed to provide capital to allow FarmRX to purchase and complete the build out of its +/-120,000 square foot Class 1 cultivation and processing facility and acquire the building housing its nearby dispensary operations in East Liverpool, Ohio.

“We are excited to support FarmaceuticalRX, an experienced operator in Pennsylvania as it expands into Ohio, a state that has favorable supply and demand dynamics and significant growth prospects,” said Leonard M. Tannenbaum, AFC’s Chief Executive Officer. “We believe this partnership will serve as the catalyst for FarmRX’s next phase of growth.”

Rebecca Meyers, FarmRX’s Chief Executive Officer, added, “I am thrilled to partner with AFC Gamma as we build out FarmRX’s presence in Ohio. AFC provided us with industry expertise and a tailored solution that met our needs, providing seamless execution in a timely manner.”

AFC will hold up to $21 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 FarmRX’s wholly owned real estate properties and other commercial-security interests. AFC Management, LLC served as Lead Arranger and Administrative Agent for the transaction.

Based in East Liverpool, Ohio, FarmRX currently has one dispensary license, one provisional Class 1 cultivation license, and one provisional processing license in the state. FarmRX’s dispensary is currently operational and it is in the process of building out its cultivation and processing operations, with a sister company having existing cultivation operations in Pennsylvania.

Ohio legalized the use of medical marijuana in 2016, with sales launching in 2019. In 2021, sales from dispensaries are projected to reach $425 million, nearly doubling 2020 sales of $221.5 million1. Sales are expected to top $500 million by 2022 or 2023. As of March 19, 2021, the number of registered patients in the state was over 175,000.

About AFC Gamma, Inc.

AFC Gamma, Inc. (NASDAQ:AFCG) is an institutional lender to leading cannabis companies with strong operations and cash-flow prospects, real-estate-security and other collateral, and locations in states with favorable supply/demand fundamentals and legislative environments. AFC’s platform provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans and bridge financings. The senior-management team of the company has a combined approximately 100 years of experience in investment management and disciplined credit investing across a range of economic cycles.

About FarmaceuticalRX

FarmaceuticalRX LLC is the leading natural and organic multistate vertically integrated medical marijuana operator in the United States. FarmaceuticalRX is focused on bringing research and development-based innovation to the medical marijuana sector. develops premier high-quality craft and innovative organic products under its existing FarmaceuticalRX brand. The Company’s Burst of Wellness brand combines the quality that FARMACEUTICALRX is known for, at a lower price point, with the goal of expanding the Company’s reach to a broader demographic of patients. The FarmaceuticalRX affiliated companies are licensed to offer premier high quality medical marijuana products to more than 26 million patients in Ohio and Pennsylvania. FarmaceuticalRX is led by a world-class team of scientists, healthcare, organic food and beverage and cannabis industry professionals who are driven by the discovery, development, and manufacturing of revolutionary, high quality natural and organic products through its vertically integrated platform. Our innovation is your future health. Learn more at www.farmaceuticalrx.com.

AFC GAMMA INVESTOR CONTACT:

Robyn Tannenbaum

561-510-2293
ir@advancedflowercapital.com
www.afcgamma.com

AFC GAMMA MEDIA CONTACT:

Jim Golden / Scott Bisang / Jack Kelleher
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

COMPANY CONTACT:

Terence Lin
Director of Strategic Finance, FarmaceuticalRX
tlin@farmaceuticalrx.com