In addition to debt payoff, the cash injection will fund additional “growth initiatives” in the state.
Privately held multistate operator Story Cannabis received a $41 million loan from Florida-based cannabis real estate lender AFC Gamma Inc. (Nasdaq: AFCG). Story’s Maryland division, Story of Maryland LLC, will use the funds to refinance some of the business’s existing debt and to pay for ongoing operations.
Daniel Neville, CEO of AFC Gamma, said in a release that this is the lender’s second such deal with Story Cannabis, after the first loan was secured by Story’s Maryland facilities and business licenses.
Neville said Story has a “proven team that knows how to scale and operate in cannabis,” and that he has great confidence in the company.
Neville also noted that the new loan brings AFC Gamma’s “new originations” of financial commitments to marijuana companies past the $100 million mark for 2024.
Jason Vedadi, CEO of Story Cannabis, added that the cash injection will allow the business to “fund additional growth initiatives” in the state.
Aside from Maryland, Story Cannabis has a footprint in Arizona, New Jersey and Ohio.
Vedadi told Green Market Report recently that investors have still not expressed much interest in returning to the marijuana trade yet, despite both presidential candidates expressing support for federal marijuana rescheduling, and the tax breaks that will come with it for the cannabis sector.
AFC Gamma, meanwhile, has become one of the more consistent profit-posting ancillary companies serving the marijuana space with financial assistance, reporting net income of $16.4 million last quarter.
[[{“value”:”In addition to debt payoff, the cash injection will fund additional “growth initiatives” in the state.
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