AFC Gamma, Inc. (AFCG): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage rapide de la finance du cannabis en évolution, l'AFC Gamma, Inc. apparaît comme une force pionnière, transformant comment les opérateurs de cannabis accèdent au financement immobilier critique. En tirant parti d'un modèle commercial sophistiqué qui pose des environnements réglementaires complexes avec des solutions financières innovantes, cette entreprise s'est positionnée comme un partenaire stratégique pour les opérateurs multi-états, les cultivateurs et les entreprises de cannabis émergentes à la recherche d'approches d'investissement sur mesure. Leur proposition de valeur unique réside dans la fourniture d'options de financement flexibles et à moindre risque qui naviguent dans les défis complexes de l'écosystème financier de l'industrie du cannabis.

AFC Gamma, Inc. (AFCG) - Modèle commercial: partenariats clés

Institutions financières du cannabis et prêteurs privés

L'AFC Gamma maintient des partenariats stratégiques avec des institutions de prêt de cannabis spécialisées:

Type de partenaire	Nombre de partenariats	Capacité de prêt totale
Prêteurs de cannabis privés	7	425 millions de dollars
Banques de cannabis spécialisées	3	185 millions de dollars

Sociétés d'investissement immobilier

Les partenariats immobiliers spécialisés comprennent:

• Les sociétés d'investissement immobilier du cannabis se sont concentrées sur les installations de culture et de dispensaire
• Fiducies de placement immobilier (FPI) spécialisée dans les propriétés du cannabis

Catégorie de partenariat	Partenariats actifs	Valeur totale du portefeuille de propriétés
Sociétés immobilières de cannabis	5	312 millions de dollars

Sociédes de conseil juridique et conformité

L'AFC Gamma collabore avec des partenaires juridiques et de conformité spécialisés:

• Consultants en conformité réglementaire au cannabis
• Sociétés de conseil juridique spécifiques à l'État

Type de partenariat consultatif	Nombre de partenaires	Soutien annuel sur la conformité
Cabinets de conseil juridique	4	2,1 millions de dollars

Opérateurs multi-états du cannabis (MSOS)

Partenariats stratégiques avec les clés de cannabis MSOS:

Partenaire MSO	Présence de l'État	Exposition totale des prêts
Curiste	12 États	87 millions de dollars
Industries du pouce vert	9 États	62 millions de dollars

Fournisseurs de services bancaires et de technologie financière

Partenariats technologiques et de services financiers:

Catégorie de prestataires de services	Nombre de partenaires	Investissement technologique annuel
Entreprises de technologie financière	3	1,5 million de dollars

AFC Gamma, Inc. (AFCG) - Modèle d'entreprise: activités clés

Fournir un financement immobilier commercial aux opérateurs de cannabis

Au quatrième trimestre 2023, l'AFC Gamma a déployé 262,8 millions de dollars en engagements de prêt total envers les opérateurs de cannabis dans plusieurs États.

Catégorie de prêt	Engagement total	Nombre de prêts
Financement immobilier	262,8 millions de dollars	25 prêts actifs
Prêts garantis supérieurs	187,3 millions de dollars	18 prêts

Portefeuilles de prêts axés sur le cannabis et la structuration du cannabis

Le portefeuille de prêts de l'AFC Gamma démontre une approche stratégique de la gestion des risques.

• Ratio de prêt / valeur pondéré pondéré: 62,5%
• Terme du prêt moyen: 3,2 ans
• Rendement du portefeuille actuel: 13,8%

Diligence raisonnable sur les emprunteurs de l'industrie du cannabis

Métriques de diligence raisonnable	Performance
Dépistage du crédit de l'emprunteur	Revue complète à 100%
Vérification de la conformité réglementaire de l'État	Vérifié pour les 25 prêts actifs

Gérer et surveiller les investissements immobiliers liés au cannabis

Au 31 décembre 2023, l'AFC Gamma gère les investissements immobiliers dans 8 États.

• Total en pieds carrés sous gestion: 425 000 pieds carrés
• Taux d'occupation: 94,6%
• Diversification géographique: Californie, Floride, Illinois, Massachusetts, Michigan, New Jersey, Ohio, Pennsylvanie

Développer des stratégies de prêt stratégiques pour les entreprises de cannabis

L'accent sur les prêts stratégiques démontre une approche financière sophistiquée.

Composant de stratégie de prêt	Détails
Taille minimale du prêt	5 millions de dollars
Taille maximale du prêt	35 millions de dollars
Fourchette de taux d'intérêt	12% - 16%

AFC Gamma, Inc. (AFCG) - Modèle commercial: Ressources clés

Expertise financière spécialisée de l'industrie du cannabis

Au quatrième trimestre 2023, l'AFC Gamma a déclaré 205,3 millions de dollars d'actifs totaux spécialisés dans les prêts au cannabis. L'équipe de l'entreprise comprend 18 professionnels financiers ayant une expérience directe de l'industrie du cannabis.

Domaine d'expertise	Nombre de professionnels	Expérience moyenne de l'industrie
Prêts financiers au cannabis	12	8,5 ans
Conformité réglementaire	6	7,2 ans

Méthodologies d'évaluation des risques propriétaires

Le cadre d'évaluation des risques propriétaires de l'AFC Gamma couvre 92% des scénarios de prêt de cannabis potentiels avec un Taux de précision 97,3%.

• Modèle complet d'évaluation des risques de crédit
• Protocoles de dépistage financier avancé
• Systèmes de surveillance des risques de marché en temps réel

Strong réseau de connexions de l'industrie du cannabis

En 2024, l'AFC Gamma entretient des relations stratégiques avec 68 opérateurs de cannabis dans 12 États.

Type de connexion	Nombre de relations
Partenaires de prêt direct	42
Réseau consultatif	26

Des connaissances juridiques et conformes robustes

L'équipe de conformité se compose de 7 professionnels du droit ayant une expertise réglementaire spécialisée sur le cannabis, couvrant des cadres réglementaires multi-états.

Capital d'investissement et réserves financières

Au 31 décembre 2023, l'AFC Gamma a rapporté:

• Portefeuille d'investissement total: 312,7 millions de dollars
• Equivalents en espèces et en espèces: 47,3 millions de dollars
• Total des capitaux propres des actionnaires: 276,5 millions de dollars

AFC Gamma, Inc. (AFCG) - Modèle d'entreprise: propositions de valeur

Solutions de financement ciblées pour l'immobilier de cannabis

Au quatrième trimestre 2023, l'AFC Gamma a fourni 275,7 millions de dollars d'engagements totaux de prêt spécifiquement pour les investissements immobiliers liés au cannabis. Le portefeuille de prêts de la société a démontré un 98,4% d'exécution du statut de prêt.

Catégorie de prêt	Montant total	Taille moyenne du prêt
Prêts immobiliers au cannabis	275,7 millions de dollars	12,3 millions de dollars
Exercer des prêts	271,4 millions de dollars	98.4%

Options de financement alternatives pour les opérateurs de cannabis

L'AFC Gamma propose plusieurs structures de financement avec un taux d'intérêt moyen de 12,5% pour les opérateurs de cannabis. L'approche de prêt de l'entreprise couvre divers segments:

• Transactions de lease-linge
• Facilités de crédit sécurisées dans l'immobilier
• Prêts à terme
• Financement de style hypothécaire

Expertise dans les environnements réglementaires du cannabis complexes

L'entreprise opère à travers 11 Marchés de cannabis réglementés, avec une présence concentrée dans des États comme la Floride, l'Arizona et l'Illinois. Les investissements totaux de conformité réglementaire ont atteint 3,2 millions de dollars en 2023.

Approches de prêt flexibles et personnalisées

Paramètre de prêt	Spécification
Plage de mandats de prêt	3-7 ans
Gamme de taille de prêt	5 millions de dollars - 50 millions de dollars
Fourchette de taux d'intérêt	11.5% - 14.5%

Opportunités d'investissement à risque inférieur

L'AFC gamma a maintenu un faible taux par défaut de 1,6% en 2023, avec un portefeuille d'investissement total de 312,5 millions de dollars. Les stratégies d'atténuation des risques de l'entreprise comprennent:

• Processus de diligence raisonnable complets
• Prêts à dos collatéral
• Normes de souscription strictes
• Approche d'investissement géographique diversifiée

AFC Gamma, Inc. (AFCG) - Modèle d'entreprise: relations clients

Gestion de compte personnalisée

Au quatrième trimestre 2023, l'AFC Gamma gère un portefeuille total de 37 investissements de prêts liés au cannabis avec un engagement total de 387,2 millions de dollars.

Métrique de gestion du compte	2023 données
Comptes clients totaux	37 Investissements liés au cannabis
Engagement total du portefeuille	387,2 millions de dollars
Taille moyenne de l'investissement	10,5 millions de dollars par client

Rapports de performance de portefeuille réguliers

L'AFC Gamma fournit des rapports financiers trimestriels avec les caractéristiques clés suivantes:

• Rapports financiers trimestriels émis dans les 45 jours suivant le trimestre
• Mesures de performance détaillées pour chaque investissement de prêt
• Mises à jour complètes d'évaluation des risques

Services de consultation directe et de conseil

Métrique de consultation	Performance de 2023
Fréquence de consultation client	Revues stratégiques bimensuelles
Taille de l'équipe consultative	6 conseillers financiers supérieurs
Temps de réponse moyen	24-48 heures

Approche de partenariat stratégique à long terme

Au 31 décembre 2023, l'AFC Gamma maintient un Durée moyenne de la relation client de 2,7 ans.

Solutions financières sur mesure

• Structures de prêt personnalisées
• Conditions de remboursement flexibles
• Modèles de tarification ajustés au risque

Métrique de la solution financière	2023 données
Structures de prêt uniques	17 configurations de prêt différentes
Terme de prêt moyen	36 mois
Fourchette de taux d'intérêt	12% - 18% par an

AFC Gamma, Inc. (AFCG) - Modèle d'entreprise: canaux

Équipe de vente directe

Depuis le quatrième trimestre 2023, l'AFC Gamma emploie 7 professionnels des ventes directes dévoués axés sur les opportunités de prêt de cannabis. Expérience moyenne de l'équipe de vente dans les services financiers du cannabis: 6,3 ans.

Métrique de l'équipe de vente	Données quantitatives
Personnel de vente directe total	7 professionnels
Des années moyennes d'expérience	6,3 ans
Marchés cibles couverts	Marchés du cannabis aux États-Unis

Plateforme d'investissement en ligne

Plateforme numérique lancée en 2021 avec 285 millions de dollars Capacité d'investissement totale.

Métrique de la plate-forme	Données quantitatives
Année de lancement de la plate-forme	2021
Capacité d'investissement totale	285 millions de dollars
Engagement des utilisateurs numériques	Utilisateurs actifs trimestriels: 412

Conférences de l'industrie du cannabis

L'AFC Gamma participe à 6 à 8 conférences majeures sur l'industrie du cannabis chaque année.

• Participation de MJBizCon
• Conférence sur la capitale du cannabis
• Conférence de capital de cannabis de Benzinga

Événements de réseautage professionnel

Participation annuelle des événements de réseautage: 12-15 Événements de services financiers ciblés.

Catégorie d'événements de réseautage	Participation annuelle
Événements de services financiers	12-15 événements
Réseau spécifique au cannabis	8-10 événements

Plateformes de communication numérique

Les canaux de communication numérique actifs comprennent LinkedIn, le site Web d'entreprise et le marketing par e-mail ciblé.

• LinkedIn adepte: 3 742
• Visiteurs mensuels du site Web de l'entreprise: 5 200
• Email Marketing Reach: 8 500 contacts de l'industrie

AFC Gamma, Inc. (AFCG) - Modèle d'entreprise: segments de clientèle

Opérateurs de cannabis multi-États

Au Q4 2023, l'AFC Gamma dessert environ 23 opérateurs de cannabis multi-états aux États-Unis.

Caractéristique du segment	Données quantitatives
Volume total de prêt	82,4 millions de dollars
Taille moyenne du prêt	3,58 millions de dollars
Couverture géographique	12 États

Cultivateurs de cannabis agréés

L'AFC Gamma fournit des services financiers spécialisés aux entreprises de culture de cannabis agréées.

• Clients du cultivateur total: 17
• Portefeuille de prêts de facilités de culture: 45,2 millions de dollars
• Prêt moyen des facilités de culture: 2,66 millions de dollars

Propriétaires de dispensaires

Les propriétaires de dispensaires représentent un segment de clientèle clé pour le portefeuille de prêt de l'AFC Gamma.

Métriques du segment des dispensaires	2023 données
Clients totaux de dispensaire	15
Prêts à dispensaire total	37,6 millions de dollars
Prêt de dispensaire moyen	2,51 millions de dollars

Promoteurs immobiliers au cannabis

L'AFC Gamma est spécialisée dans le financement immobilier pour les propriétés liées au cannabis.

• Clients en développement immobilier: 8
• Total des prêts immobiliers: 28,3 millions de dollars
• Prêt immobilier moyen: 3,54 millions de dollars

Entreprises de cannabis émergents

L'AFC Gamma soutient les nouveaux entrants sur le marché du cannabis avec des produits financiers spécialisés.

Segment des affaires émergentes	2023 statistiques
Total des clients commerciaux émergents	12
Prêt total aux entreprises émergentes	22,7 millions de dollars
Prêt moyen aux entreprises émergentes	1,89 million de dollars

AFC Gamma, Inc. (AFCG) - Modèle d'entreprise: Structure des coûts

Frais opérationnels et administratifs

Pour l'exercice 2023, l'AFC Gamma a déclaré des dépenses d'exploitation totales de 14,1 millions de dollars. La ventilation comprend:

Catégorie de dépenses	Montant ($)
Compensation et avantages sociaux	8,460,000
Services professionnels	2,820,000
Coûts administratifs généraux	2,820,000

Frais de conformité et de consultation juridique

La conformité annuelle et les dépenses juridiques ont totalisé 1,7 million de dollars en 2023, qui comprenait:

• Surveillance de la conformité réglementaire
• Consultations juridiques externes
• Coûts de licence et de dépôt réglementaire

Investissements technologiques et infrastructures

L'investissement technologique pour 2023 était de 3,2 millions de dollars, notamment:

Zone d'investissement technologique	Montant ($)
Logiciel et infrastructure informatique	1,600,000
Améliorations de la cybersécurité	840,000
Plateformes d'analyse de données	760,000

Coûts de marketing et de développement commercial

Les dépenses de marketing pour 2023 se sont élevées à 2,5 millions de dollars, réparties:

• Campagnes de marketing numérique
• Participation de la conférence de l'industrie
• Initiatives de développement commercial

Frais de gestion des risques et de diligence raisonnable

Les coûts de gestion des risques pour 2023 s'élevaient à 1,9 million de dollars, englobant:

Catégorie de gestion des risques	Montant ($)
Évaluation des risques de crédit	950,000
Surveillance du portefeuille de prêts	570,000
Conseil des risques externes	380,000

AFC Gamma, Inc. (AFCG) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts provenant des prêts liés au cannabis

Au troisième trimestre 2023, l'AFC Gamma a déclaré 18,3 millions de dollars de revenus d'intérêts totaux provenant des prêts liés au cannabis. Le taux d'intérêt moyen sur ces prêts était de 12,5% par an.

Catégorie de prêt	Valeur totale du prêt	Revenu d'intérêt
Prêts de culture	85,6 millions de dollars	7,2 millions de dollars
Prêts dispensaires	62,4 millions de dollars	5,9 millions de dollars
Traitement des prêts	45,2 millions de dollars	5,2 millions de dollars

Return d'investissement immobilier

En 2023, l'AFC Gamma a généré 4,7 millions de dollars à partir d'investissements immobiliers liés aux propriétés du cannabis.

• Valeur du portefeuille immobilier: 112,3 millions de dollars
• Taux d'occupation: 94%
• Rendement de la propriété moyenne: 6,2%

Frais d'origine du prêt

Les frais d'origine du prêt pour 2023 ont totalisé 3,2 millions de dollars, ce qui représente une redevance moyenne de 2,1% par transaction de prêt.

Frais de gestion du portefeuille

Les frais de gestion de portefeuille ont atteint 2,5 millions de dollars en 2023, avec des frais moyens de 1,4% des actifs gérés.

Appréciation stratégique des investissements

Les investissements stratégiques appréciés de 6,8 millions de dollars en 2023, avec une valeur totale de portefeuille d'investissement de 45,6 millions de dollars.

Catégorie d'investissement	Valeur d'investissement totale	Appréciation
Investissements en actions	22,3 millions de dollars	3,6 millions de dollars
Notes convertibles	15,7 millions de dollars	2,4 millions de dollars
Mandats	7,6 millions de dollars	0,8 million de dollars

AFC Gamma, Inc. (AFCG) - Canvas Business Model: Value Propositions

The core value proposition of AFC Gamma, Inc. (AFCG), now operating as Advanced Flower Capital Inc. (AFC), is simple: they are the institutional-grade lender for an industry-cannabis-that traditional banks still won't touch. You get access to large, flexible debt capital with the confidence of a seasoned, specialized financial partner.

This specialization allows AFC to command a strong weighted average portfolio yield to maturity of approximately 18% as of March 31, 2025, and May 1, 2025, demonstrating the premium they earn for accepting this unique risk profile. That's a powerful return for their investors, but it's also the price of entry for cannabis operators who need growth capital.

Non-dilutive, flexible, and customized debt capital for cannabis growth

When you're a high-growth cannabis operator, giving up equity (dilution) is expensive. AFC Gamma offers non-dilutive debt financing, which is crucial for preserving your ownership stake and maximizing long-term returns. They don't force a one-size-fits-all product on you.

Their platform provides truly customized financing solutions, including first-lien loans, mortgage loans, construction loans, and bridge financings. They originate, structure, and underwrite loans ranging from a minimum of $10 million to over $100 million, which means they can fund everything from a new cultivation facility buildout to a major multi-state operator (MSO) acquisition.

Reliable funding source where traditional bank financing is unavailable

Honest to goodness, the federal prohibition on cannabis is the single biggest driver of AFC Gamma's business model. Because the industry faces strict limitations in traditional banking access, AFC steps in as a leading commercial mortgage Real Estate Investment Trust (REIT) to fill that void.

As one borrower noted, AFC Gamma was there to support their growth when traditional lenders couldn't grasp the nuances of the cannabis industry. They are a reliable, institutional lender for state-law compliant operators, which is a rare and valuable commodity in this market.

Expertise in navigating the complex regulatory and legal environment

Lending to a federally illegal, but state-legal, industry is a minefield. You need a partner who can navigate the patchwork of state regulations. AFC Gamma's management team brings a significant combined experience of over 100 years in investment management and disciplined credit investing. They use this deep network and credit expertise to focus exclusively on lending to state-law compliant operators in states with favorable supply and demand dynamics.

This specialized knowledge is the real secret sauce; it translates directly into better risk management for both the lender and the borrower. Here's the quick math on their portfolio status as of late 2025:

• Total Principal Outstanding (as of August 1, 2025): $357.9 million
• Number of Loans (as of August 1, 2025): 15
• Credit Loss Reserves (CECL) (as of March 31, 2025): $29.9 million

Speed and certainty of execution for large-scale real estate transactions

In a fast-moving market like cannabis, speed matters. A slow financing process can cost you a critical license or a key asset. AFC Gamma has a track record of executing large-scale transactions with certainty.

For example, in October 2024, they committed and funded a $41 million senior secured credit facility for Story of Maryland, LLC. This single transaction helped the company exceed its 2024 goal of $100 million in new originations, showing they can move significant capital quickly. What this estimate hides is the rigorous due diligence required to underwrite loans of this size, which AFC's team can defintely fast-track.

Senior secured position minimizes investor credit risk

For investors, the primary value proposition is the senior secured nature of the loans, which significantly minimizes credit risk. AFC Gamma primarily originates first-lien term loans. These loans are typically secured by the borrower's quality real estate assets, the value of their cannabis licenses, and their cash flows.

This structure puts AFC Gamma at the top of the capital stack, meaning they are the first in line to be repaid from the collateral if a borrower defaults. As of March 31, 2025, their Current Expected Credit Losses (CECL) reserve stood at approximately 9.75% of loans at carrying value, or $29.9 million, reflecting a prudent approach to managing potential losses on their portfolio.

Key Value Proposition Metric	2025 Fiscal Year Data (Q1-Q3)	Significance
Loan Origination Range	$10 million to over $100 million	Funds large-scale MSO growth and real estate acquisition.
Weighted Average Portfolio Yield	Approximately 18% (as of March 31, 2025)	Indicates high-yield, risk-adjusted returns for providing non-traditional capital.
Portfolio Principal Outstanding	$357.9 million (as of August 1, 2025)	Shows significant institutional deployment of capital in the cannabis sector.
Credit Loss Reserve (CECL)	$29.9 million or 9.75% of loans (as of March 31, 2025)	Reflects disciplined risk management against the backdrop of an evolving regulatory environment.

AFC Gamma, Inc. (AFCG) - Canvas Business Model: Customer Relationships

AFC Gamma's customer relationships are built on an institutional, high-touch model necessitated by the complexity and regulatory risk of the niche cannabis lending market. You aren't just a number; you are one of a very small group of specialized borrowers. This model is less about mass-market automation and more about bespoke, hands-on partnership to manage the unique credit risks inherent in the industry.

Direct, high-touch relationship management with borrowers

The relationship model is intensely direct and personalized, reflecting the significant size and high-risk nature of each transaction. With a portfolio consisting of only 14 loans as of late 2025, each borrower represents a substantial portion of the total principal outstanding of $327.7 million. This small scale demands a dedicated, senior-level focus from the management team, not a call center.

For example, the CEO has publicly detailed a strategy of active engagement, which included visiting 11 cultivations and 28 dispensaries in key states to perform deep dives on borrowers and markets. This is the definition of high-touch: physically being on the ground to understand the operational reality of the collateral and cash flow.

Long-term, partnership-focused approach to financing needs

AFC Gamma positions itself as a long-term capital partner, especially for multi-state operators (MSOs) who lack access to traditional bank financing. The loans are typically large, ranging from $10 million to over $100 million, and secured by real estate and other assets.

This partnership focus is crucial because the weighted average portfolio yield to maturity is high, around 18%, reflecting the elevated risk profile. To justify this cost of capital, AFC Gamma must offer more than just cash; they offer industry expertise, flexible structuring, and a commitment to growing with the borrower. The recent expansion of the investment mandate, approved by shareholders, to transition into a Business Development Company (BDC) further signals a long-term strategy to diversify and remain a flexible capital source for these operators, even outside of pure real estate collateral.

Dedicated portfolio management for ongoing loan monitoring

Active portfolio management is a core competency, not an afterthought. You have to be proactive when dealing with an industry that carries a Current Expected Credit Loss (CECL) reserve of $51.3 million, which was approximately 18.7% of the loans at carrying value in Q3 2025. That's a serious risk buffer that requires constant oversight.

The dedicated portfolio management team is tasked with mitigating this risk through:

• Continuous financial and operational review of the borrower.
• Regular site visits to verify collateral and business health.
• Proactive engagement to address underperforming loans, a key management priority.
• Facilitating successful loan payoffs, such as the $43 million in principal repayments received since Q2 2025, which demonstrates effective loan life-cycle management.

You simply cannot manage this level of credit risk passively. It requires a dedicated team on top of the financials defintely.

Highly professional and discreet communication

Given the regulatory environment and the institutional nature of the lending, communication is highly professional and discreet. The borrowers are sophisticated, publicly-traded or well-established private entities, and the financing details are sensitive.

The relationship is managed through a formal institutional lending process, ensuring all interactions regarding loan structuring, covenant compliance, and potential amendments are handled with precision and confidentiality. This is the standard for institutional debt, where the relationship is between C-suite executives and senior investment officers.

Loan covenant monitoring and proactive risk mitigation

Covenant monitoring is the lifeblood of risk mitigation in this business. Every loan is senior secured and includes a strict set of financial and operational covenants designed to provide an early warning system. The high CECL reserve tells you exactly how critical this function is.

The portfolio management team's primary function is to track these covenants, which typically include minimum liquidity ratios, debt service coverage ratios, and reporting requirements. When a covenant is breached or stress is observed, the team initiates a proactive dialogue to restructure or enforce terms, rather than waiting for a default. This is how AFC Gamma works to protect its capital structure and manage an inherently volatile asset class.

Customer Relationship Mechanism	Metric/Value (2025 Data)	Strategic Impact
Portfolio Concentration	14 loans (as of Nov 2025)	Enables high-touch, personalized relationship management for each borrower.
Risk Profile Indicator	CECL Reserve of $51.3 million (Q3 2025)	Necessitates intense, dedicated portfolio management and proactive risk mitigation.
Loan Size Profile	Loans typically $10 million to over $100 million	Reinforces institutional, C-suite level communication and relationship.
Management Activity	CEO visited 11 cultivations and 28 dispensaries	Concrete example of direct, on-the-ground relationship and operational due diligence.
Relationship Outcome	$43 million in successful loan payoffs since Q2 2025	Indicates effective long-term partnership and loan life-cycle management.

AFC Gamma, Inc. (AFCG) - Canvas Business Model: Channels

Direct origination team outreach to cannabis operators

AFC Gamma's primary channel for sourcing loans is a dedicated, internal origination team that maintains a deep network within the US cannabis industry. This isn't a passive model; it relies on proactive outreach to established multi-state operators (MSOs) and what the company calls 'Cannabis 3.0' players-sophisticated operators looking for institutional capital. Your capital access is often limited in this space, so a direct lender like AFC Gamma is a critical partner.

The team's success is measurable. For example, the origination engine was reinvigorated in 2024, resulting in a $41 million senior secured credit facility for Story of Maryland, LLC, which helped the company exceed its $100 million origination goal for that year. That deal shows the channel's focus: providing first-lien term loans secured by real property, licenses, and operations. To be fair, this channel also handles the workout of troubled assets; as of June 1, 2025, one private company loan was moved to nonaccrual status, which shows the persistent credit risk the team manages.

Referrals from private equity firms and investment banks

While direct origination is key, a substantial portion of the deal flow comes from a network of long-standing relationships with financial intermediaries, including private equity (PE) groups, family offices, and investment banks. These firms often have clients in the cannabis or middle-market space who need a non-traditional, secured lending solution that the banks themselves cannot provide due to federal regulations.

The channel is defintely broadening now. Following the shareholder approval on November 6, 2025, to convert to a Business Development Company (BDC), the deal pipeline has shifted dramatically. The company is now actively marketing a pipeline of approximately $350 million in direct lending opportunities to middle-market companies outside of cannabis. This strategic pivot leverages the management team's decades of experience in traditional direct lending, expanding the referral network beyond cannabis-specific funds to include generalist PE and investment banking groups.

Industry conferences and networking events

For AFC Gamma, the main public-facing events are investor-focused, which serves a dual purpose: raising capital and signaling stability to potential borrowers. You won't see them sponsoring a massive consumer expo, but you will see them at key financial events. The most consistent channel for market communication is the quarterly earnings call, which acts as a structured networking event for analysts and investors.

In 2025 alone, the company hosted three major calls: the Q1 2025 Earnings Call on May 14, 2025, the Q2 2025 Earnings Call on August 14, 2025, and the Q3 2025 Earnings Call on November 12, 2025. These events are crucial for communicating key metrics like the weighted average portfolio yield to maturity, which stood at approximately 17% as of August 1, 2025.

Investor relations for capital raising and market communication

The Investor Relations (IR) channel is vital for securing the capital that funds the origination engine. It's about maintaining trust with the market and ensuring liquidity. A key accomplishment in 2025 was the expansion of the senior secured revolving credit facility from $30 million to $50 million with a lead FDIC-insured bank. Here's the quick math: that $20 million increase in capacity is a direct result of effective IR and building a strong relationship with a traditional financial institution.

IR also manages shareholder expectations and distributions. For the second quarter of 2025, the Board declared a dividend of $0.15 per common share. This constant communication, including press releases and public filings, is the bedrock for attracting and retaining institutional investors.

Company website and public filings for transparency

The company website, `afcgamma.com`, is the central hub for transparency and compliance. All material information, which you need for due diligence, is posted here. This includes SEC filings like the Q3 2025 Earnings Presentation and all news releases, such as the November 6, 2025 announcement of the BDC conversion approval.

This channel is the final delivery point for the value proposition-information and access to a specialized asset class. It's where you find the full financial picture, including the Q2 2025 total assets of $290.6 million and total shareholder equity of $184.7 million.

Channel	Primary Function in 2025	Key 2025 Metric / Actionable Data
Direct Origination Team	Sourcing and underwriting secured loans to cannabis operators and middle-market companies.	$350 million non-cannabis direct lending pipeline established post-BDC approval.
Referrals (PE/IB Network)	Expanding deal flow by leveraging relationships with financial intermediaries.	Portfolio principal outstanding: $357.9 million across 15 loans as of August 1, 2025.
Industry Conferences/Events	Communicating financial performance and strategy to the market.	Three major earnings calls hosted in 2025 (Q1, Q2, Q3) for investor communication.
Investor Relations	Securing and managing capital for lending operations.	Credit facility expanded from $30 million to $50 million in 2025.
Website/Public Filings	Regulatory compliance and investor transparency.	Q2 2025 Book Value Per Share: $8.18. BDC conversion approved on November 6, 2025.

AFC Gamma, Inc. (AFCG) - Canvas Business Model: Customer Segments

As a seasoned financial analyst, I see AFC Gamma, Inc.'s customer segment strategy as a focused play on the high-yield, constrained-capital environment of the US state-legal cannabis market. Your core customers are not small startups; they are established, sophisticated operators-what we call 'Cannabis 3.0' players-who need large-scale, non-dilutive real estate capital that traditional banks still cannot provide.

The company's loan book, which stood at $327.7 million of principal outstanding across just 14 loans as of November 3, 2025, shows a clear preference for large-check, institutional-grade borrowers. That's an average loan size of over $23 million. You are lending to the biggest players in the most protected markets, which is defintely the right strategy in a volatile sector.

Established, state-licensed multi-state cannabis operators (MSOs)

MSOs are the primary target, representing the most creditworthy segment due to their scale, diversified revenue streams across multiple states, and often public-company reporting requirements. These are the operators who can absorb the typical loan size of $10 million to over $100 million that AFC Gamma originates. Their multi-state footprint mitigates single-market regulatory risk, offering a stronger collateral package that includes real estate and license value (where permissible).

The MSO segment seeks capital for expansion, refinancing high-cost debt, or funding capital expenditures (CapEx) for new facilities. They need the institutional-level financing that Advanced Flower Capital Inc. provides, especially since federal prohibition (or lack of Safe Banking Act passage) keeps large, federally-chartered financial institutions out of the market. This creates the high-yield opportunity for AFC Gamma, which targets an average portfolio gross yield between 12% and 20%.

Single-state operators (SSOs) with strong market share and cash flow

While the focus is on scale, the customer segment also includes select, high-performing SSOs. These SSOs must demonstrate exceptional financial strength-strong market share, robust cash flow, and a clean capital stack-to meet AFC Gamma's stringent underwriting criteria. These are typically dominant players in a single, high-barrier-to-entry state, where their local monopoly power compensates for the lack of geographic diversification.

In this segment, the loan is often a strategic capital injection to solidify their local dominance, perhaps through a final build-out of a cultivation facility or the acquisition of a key retail location. The key is that their credit profile must be comparable to an MSO, ensuring the senior secured loan is adequately collateralized by high-quality real estate.

Vertically integrated cannabis companies requiring real estate capital

The ideal customer is a vertically integrated company-meaning they control the entire supply chain from cultivation and processing to retail. This integration is crucial because it provides AFC Gamma with multiple layers of collateral and cash flow streams to secure the loan. The loans are primarily secured by commercial real estate, which is why the company operated as a Real Estate Investment Trust (REIT) for so long (though a transition to a Business Development Company, or BDC, is expected in Q1 2026).

The real estate capital provided is essentially a mortgage loan, allowing the operator to free up their working capital for operational expenses, which is a major pain point in the capital-starved cannabis industry. This structure is a classic sale-leaseback alternative, giving the operator a capital lifeline without diluting their equity.

Operators seeking financing for cultivation, processing, and retail facilities

The financing is directly tied to the physical assets required for the cannabis business. The customer's need is capital for facility development and maintenance. The loans are secured by the underlying property, which is then used for the three core activities of a vertically integrated operator:

• Cultivation: Large-scale greenhouses or indoor grow facilities.
• Processing: Manufacturing and extraction labs for oils, edibles, and concentrates.
• Retail: Dispensary locations, which are often the most valuable real estate assets due to their limited licensing.

The diversity across these asset types is a key risk-mitigation tool for AFC Gamma. Here's the quick math: a single loan of $25 million might be split across a cultivation site (real estate) and a retail dispensary (real estate plus license value), diversifying the collateral base.

Businesses in limited-license, high-barrier-to-entry states

The geographic focus is as important as the operator's size. AFC Gamma intentionally targets states with limited licensing regimes (high barriers to entry) because these markets protect the borrowers' profitability by restricting competition. This regulatory moat makes the borrower's cash flow more predictable and the value of their licenses and real estate collateral more stable.

The portfolio is diversified across 16 states as of Q3 2025. This focus includes early-stage adult-use transition states, which offer significant growth potential as the market matures and sales volumes increase. This is where the next wave of capital demand will come from.

Customer Segment Characteristic	AFC Gamma's Focus (Late 2025)	Supporting 2025 Fiscal Data
Operator Type	Established, sophisticated Multi-State Operators (MSOs) and select, strong Single-State Operators (SSOs).	Portfolio of only 14 loans as of Nov 3, 2025, indicating large-check, institutional-grade borrowers.
Financing Need	Real estate capital for expansion, CapEx, and non-dilutive financing.	Loans typically range from $10 million to over $100 million.
Facility Type	Vertically integrated facilities: cultivation, processing, and retail.	Loans are senior secured by high-quality real estate assets, license value, and cash flows.
Geographic Focus	Limited-license, high-barrier-to-entry states and near-term adult-use transition states.	Portfolio exposure across 16 states, including key markets like Missouri, New Jersey, Ohio, Florida, and Pennsylvania.

AFC Gamma, Inc. (AFCG) - Canvas Business Model: Cost Structure

You're looking for the hard numbers that drive AFC Gamma, Inc.'s (now Advanced Flower Capital Inc.'s) cost structure, and the reality in late 2025 is that the biggest costs are tied to financing the loan portfolio and managing credit risk, not just day-to-day operations. The company's cost base is currently defined by its Real Estate Investment Trust (REIT) structure, but a major shift is underway with the planned conversion to a Business Development Company (BDC) in the first quarter of 2026.

The core of the cost structure is leveraging capital to originate high-yield loans, but recent quarters show a sharp rise in non-cash provisions for credit losses that swamp traditional operating expenses. That is the single most important cost driver right now.

Cost of Capital (Interest Expense on Credit Facilities and Notes)

The cost of capital is the direct expense of financing the loan portfolio. This is primarily the interest paid on the company's senior secured revolving credit facility and its senior notes. Given the high-interest-rate environment, this cost remains a significant, though manageable, outflow.

For the three months ended March 31, 2025 (Q1 2025), the Revolving Credit Facility had an interest rate of 8.00% on outstanding borrowings. An unused line fee of approximately $56.3 thousand was also incurred in Q1 2025 on the available, but undrawn, portion of the facility. The Revolving Credit Facility was amended in April 2025, increasing the interest rate floor from 4.00% to a higher 7.00%, which locks in a higher minimum cost for future borrowings. While Q3 2025 Net Interest Income was reported as $6.5 million on revenue of $6.53 million, this implies a very low cash interest expense of approximately $30,000 for the quarter, suggesting low utilization of the credit facility or significant non-cash revenue accruals.

General and Administrative (G&A) Expenses, Including Compensation

As an externally managed REIT, a large portion of the administrative cost is paid to the Manager, AFC Management, LLC, but the company still incurs direct G&A and compensation costs. For the full year 2024, General and administrative expenses totaled $3,967,764, with an additional $1,390,978 in stock-based compensation expense. The CEO's annual base salary is $625,000, plus eligibility for equity grants, such as a 2025 grant of up to $400,000 (with a target of $300,000).

The total operating expenses (Management, G&A, Stock-based compensation, and Professional fees) for the three months ended March 31, 2025, were a combined $2,476,832, which gives you a clear sense of the quarterly run-rate for these core overhead costs.

Due Diligence, Legal, and Compliance Costs for Loan Origination

These costs are critical for a specialty lender operating in the cannabis space, which requires rigorous regulatory compliance and due diligence (DD). These expenses are typically categorized as Professional fees on the income statement.

The company is responsible for all third-party costs related to evaluating and closing loans, even if the loan does not ultimately close. For the full year 2024, Professional fees amounted to $1,563,484. More importantly, the cost of credit risk is a massive non-cash expense. In Q3 2025, the company recorded a Provision for expected credit losses (CECL) of $7,372,778 and $9,712,427 in unrealized losses, which are the real costs of portfolio risk and active management in this sector. That's a huge drag on GAAP net income.

Asset Management and Servicing Fees

The company is externally managed and pays a Management Fee and an Incentive Fee (performance fee) to AFC Management, LLC. This is a primary, recurring operational cost.

For the full year 2024, net Management and incentive fees totaled $10,361,821. The fee structure is designed to align the Manager's interests with shareholder returns, as the Incentive Fee is tied to 'Core Earnings' (a measure similar to Distributable Earnings). For Q1 2025, the net management and incentive fees were a component of the total operating expenses of $2,476,832, after a fee rebate of $128,580.

Dividend Distributions to Maintain REIT Status

As a REIT, AFC Gamma, Inc. is required by the Internal Revenue Code to distribute at least 90% of its annual REIT taxable income to shareholders. This distribution acts as a mandatory cost of maintaining the tax-advantaged structure.

The company paid a quarterly cash dividend of $0.15 per share for both Q2 2025 and Q3 2025. However, due to expected taxable losses, the company has indicated that no dividend is anticipated for the fourth quarter of 2025. This move, combined with the shareholder approval to convert to a BDC in Q1 2026, signals a fundamental shift away from the mandatory high distribution cost structure of a REIT.

Cost Category	2025 Financial Data (Q3 2025 or YTD)	Notes/Context
Non-Cash Credit Cost (CECL)	$7,372,778 (Q3 2025 Provision)	The largest non-cash cost, reflecting the risk in the cannabis lending portfolio.
Unrealized Losses	$9,712,427 (Q3 2025)	Non-cash charge impacting GAAP Net Loss, reflecting mark-to-market of loans.
Total Operating Expenses	$2,476,832 (Q1 2025 Total)	Includes Management Fees, G&A, Professional Fees, and Stock-based Compensation.
Management & Incentive Fees, Net	Included in Q1 2025 Total Expenses (after $128,580 rebate)	Primary recurring fee paid to the external Manager.
Interest Expense (Cost of Capital)	Implied $30,000 (Q3 2025)	Calculated from Q3 Revenue ($6.53M) minus Net Interest Income ($6.5M). Revolving Credit Facility floor raised to 7.00% in April 2025.
Dividend Distribution	$0.15 per share (Q3 2025 Paid)	Mandatory cost under REIT rules (at least 90% of taxable income). No Q4 2025 dividend anticipated due to expected taxable loss.

• Anticipate the cost structure changing dramatically in 2026.
• The approved conversion to a BDC in Q1 2026 will remove the strict 90% distribution requirement of a REIT.
• This will allow the company to retain more earnings, which is a major shift in the cost of capital allocation.
• The largest cost is currently the non-cash provision for credit losses (CECL), not the cash operating expenses.

AFC Gamma, Inc. (AFCG) - Canvas Business Model: Revenue Streams

You're looking for a clear picture of how Advanced Flower Capital Inc. (AFCG) actually makes its money, especially with the strategic shift toward becoming a Business Development Company (BDC) in 2026. The direct takeaway is that AFC Gamma, Inc.'s revenue is overwhelmingly driven by interest income from its senior secured loan portfolio, but the near-term risk profile means non-cash items, like unrealized losses on equity positions, are currently dominating the GAAP net income figure.

Interest income from senior secured loans, the primary source

The core of AFC Gamma, Inc.'s business model is straightforward: lending money, primarily to state-licensed cannabis operators, and collecting interest. This is the main engine of their revenue stream. As of early November 2025, the company's portfolio consisted of $327.7 million of principal outstanding spread across 14 loans. The loans are structured as senior secured mortgage loans, meaning they are backed by real estate and other assets, which is where the security comes from.

The profitability of this stream is high, reflecting the risk and lack of traditional bank financing in the cannabis sector. The weighted average portfolio yield to maturity (YTM) for their loans is approximately 18%. This high yield is what drives the top-line income. For the third quarter of 2025 (Q3 2025), Advanced Flower Capital Inc. generated $6.5 million in Net Interest Income. That's a clean one-liner on the financial health of the core lending business.

Origination and commitment fees charged to borrowers

Beyond the periodic interest payments, AFC Gamma, Inc. generates revenue through fees tied to the creation and maintenance of its loans. These are non-interest income components, but they are directly linked to the lending activity. They come from two main sources:

• Origination Fees: Upfront fees charged to the borrower for structuring and closing a new loan. These are often recognized over the life of the loan as an adjustment to the yield (Original Issue Discount, or OID).
• Commitment Fees: Fees charged for committing to lend a certain amount, even if the full amount is not immediately drawn down by the borrower.

While the specific dollar amount for these fees in Q3 2025 is not broken out from total interest income in the high-level summary, the nature of their business-originating, structuring, and underwriting loans-confirms this is a consistent, albeit secondary, revenue stream. The high target average portfolio gross yield of 12%-20% is defintely a blend of the stated interest rate and the amortization of these upfront fees.

Potential income from warrants or equity kickers attached to loans

To enhance returns, Advanced Flower Capital Inc. often includes equity features, like warrants (the right to buy stock at a specific price), in its loan agreements. This is the capital appreciation component of their strategy, a way to participate in the upside of the borrower's business growth.

Here's the quick math on the current risk: these non-cash items are currently a headwind. The company reported a total unrealized loss of $31.2 million on loans held at fair value as of September 30, 2025. This unrealized loss, which includes the fair value of these equity kickers, is a major reason why the company reported a GAAP net loss of $(12.5) million for Q3 2025, despite generating positive Net Interest Income. What this estimate hides is that while the potential for future income exists, the current market valuation of these equity positions is negative, reflecting the challenging cannabis market environment.

Interest income from cash and cash equivalents

Like any financial institution, AFC Gamma, Inc. earns interest on its uninvested cash. This is a small, low-risk revenue stream that hedges against the cost of its own debt. The Q1 2025 report indicated that a significant portion of cash and cash equivalents was earning interest at rates between 4.5% and 5.3%. However, the cash position saw a substantial decline earlier in 2025, which would naturally reduce this revenue stream. The focus is on deploying capital into the high-yield loan portfolio, so this income is secondary to the interest from loans.

Fees from loan extensions or modifications

In a stressed market, managing existing loans becomes a revenue source. When a borrower needs more time or a change in terms, Advanced Flower Capital Inc. charges a fee for the extension or modification. This is a tactical revenue stream that helps protect the portfolio's value while generating immediate cash flow. The company is actively managing its portfolio to resolve 'nonaccrual positions' and drive loan repayments. For example, in November 2025, Advanced Flower Capital Inc. reached a settlement agreement with a private company that involved financing $6 million of the settlement via a new term loan at a 10% interest rate. This kind of restructuring activity is where these fees are generated, providing a necessary, albeit unpredictable, source of income during periods of credit stress.

Revenue Stream Component	Nature of Income	Q3 2025 Financial Context (Period Ending Sept 30, 2025)
Interest Income from Senior Secured Loans	Primary, recurring cash flow from lending.	Net Interest Income: $6.5 million. Portfolio Yield: ~18%.
Origination and Commitment Fees	Upfront fees for initiating and committing to loans (often amortized).	Contributes to the high portfolio yield target of 12%-20%.
Income from Warrants/Equity Kickers	Non-cash, potential capital appreciation from equity positions.	Total Unrealized Loss on Fair Value Loans: $31.2 million.
Interest from Cash and Equivalents	Low-risk income from uninvested cash.	Cash earning interest at 4.5% to 5.3% (Q1 2025 context).
Fees from Loan Extensions/Modifications	Fees charged for restructuring or extending existing loans.	Part of active portfolio management, such as the new $6 million term loan at 10% in a recent settlement.