AFC Gamma, Inc. (AFCG): Modelo de negócios Canvas [Jan-2025 Atualizado]

No cenário em rápida evolução do Finance de Cannabis, a AFC Gamma, Inc. surge como uma força pioneira, transformando como os operadores de cannabis acessam o financiamento imobiliário crítico. Ao alavancar um modelo de negócios sofisticado que preenche ambientes regulatórios complexos com soluções financeiras inovadoras, esta empresa se posicionou como parceira estratégica para operadores de vários estados, cultivadores e empresas emergentes de maconha que buscam abordagens de investimento personalizado. Sua proposta de valor única está em fornecer opções de financiamento flexíveis e de menor risco que navegam pelos intrincados desafios do ecossistema financeiro da indústria de cannabis.

AFC Gamma, Inc. (AFCG) - Modelo de negócios: Parcerias -chave

Instituições financeiras de cannabis e credores privados

A AFC Gamma mantém parcerias estratégicas com instituições especializadas de empréstimos de cannabis:

Tipo de parceiro	Número de parcerias	Capacidade total de empréstimos
Credores particulares de cannabis	7	US $ 425 milhões
Bancos especializados de cannabis	3	US $ 185 milhões

Empresas de investimento imobiliário

Parcerias imobiliárias especializadas incluem:

• As empresas de investimento imobiliário de cannabis focadas em instalações de cultivo e dispensário
• Reitores de investimento imobiliário (REITs) especializados em propriedades de cannabis

Categoria de parceria	Parcerias ativas	Valor total da portfólio de propriedades
Empresas imobiliárias de cannabis	5	US $ 312 milhões

Empresas de consultoria legal e de conformidade

A AFC Gamma colabora com parceiros de conformidade e conformidade especializados:

• Consultores de conformidade regulatória de cannabis
• Empresas de consultoria jurídica específicas do estado

Tipo de parceria consultiva	Número de parceiros	Suporte anual de conformidade
Empresas de consultoria jurídica	4	US $ 2,1 milhões

Operadores multi-estados de cannabis (MSOs)

Parcerias estratégicas com os principais MSOs de cannabis:

MSO parceiro	Presença do estado	Exposição total dos empréstimos
Curalaf	12 estados	US $ 87 milhões
Indústrias de Thumb Green	9 estados	US $ 62 milhões

Provedores de serviços bancários e de tecnologia financeira

Parcerias de Tecnologia e Serviço Financeiro:

Categoria do provedor de serviços	Número de parceiros	Investimento de tecnologia anual
Empresas de tecnologia financeira	3	US $ 1,5 milhão

AFC Gamma, Inc. (AFCG) - Modelo de negócios: Atividades -chave

Fornecendo financiamento imobiliário comercial para operadores de cannabis

A partir do quarto trimestre de 2023, a AFC Gamma implantou US $ 262,8 milhões em compromissos totais de empréstimos com os operadores de cannabis em vários estados.

Categoria de empréstimo	Compromisso total	Número de empréstimos
Financiamento imobiliário	US $ 262,8 milhões	25 empréstimos ativos
Empréstimos garantidos sênior	US $ 187,3 milhões	18 empréstimos

Subscrição e estruturação portfólios de empréstimos focados em cannabis

A carteira de empréstimos da AFC Gamma demonstra uma abordagem estratégica para o gerenciamento de riscos.

• Relação média ponderada em empréstimo / valor: 62,5%
• Termo médio de empréstimo: 3,2 anos
• Rendimento atual do portfólio: 13,8%

Conduzindo a devida diligência nos mutuários da indústria de cannabis

Métricas de due diligence	Desempenho
Triagem de crédito do mutuário	Revisão 100% abrangente
Verificação de conformidade regulatória do estado	Verificado para todos os 25 empréstimos ativos

Gerenciando e monitorando investimentos imobiliários relacionados à cannabis

Em 31 de dezembro de 2023, a AFC Gamma gerencia investimentos imobiliários em 8 estados.

• Metragem quadrada total em gestão: 425.000 pés quadrados
• Taxa de ocupação: 94,6%
• Diversificação geográfica: Califórnia, Flórida, Illinois, Massachusetts, Michigan, Nova Jersey, Ohio, Pensilvânia

Desenvolvendo estratégias de empréstimos estratégicos para empresas de cannabis

O foco de empréstimo estratégico demonstra abordagem financeira sofisticada.

Componente da estratégia de empréstimo	Detalhes
Tamanho mínimo do empréstimo	US $ 5 milhões
Tamanho máximo do empréstimo	US $ 35 milhões
Intervalo de taxa de juros	12% - 16%

AFC Gamma, Inc. (AFCG) - Modelo de negócios: Recursos -chave

Especializado Especializado Indústria Financeira da Indústria

A partir do quarto trimestre de 2023, a AFC Gamma registrou US $ 205,3 milhões em ativos totais especializados em empréstimos de cannabis. A equipe da empresa compreende 18 profissionais financeiros com experiência direta na indústria de cannabis.

Área de especialização	Número de profissionais	Experiência média do setor
Empréstimo financeiro de cannabis	12	8,5 anos
Conformidade regulatória	6	7,2 anos

Metodologias de avaliação de risco proprietárias

A estrutura de avaliação de risco proprietária da AFC Gamma abrange 92% de potenciais cenários de empréstimos de cannabis com um 97,3% de taxa de precisão histórica.

• Modelo abrangente de avaliação de risco de crédito
• Protocolos avançados de triagem financeira
• Sistemas de monitoramento de risco de mercado em tempo real

Forte rede de conexões da indústria de cannabis

A partir de 2024, a AFC Gamma mantém relações estratégicas com 68 operadores de cannabis em 12 estados.

Tipo de conexão	Número de relacionamentos
Parceiros de empréstimos diretos	42
Rede consultiva	26

Conhecimento legal e de conformidade

A equipe de conformidade consiste em 7 profissionais do direito com experiência regulatória especializada em cannabis, cobrindo estruturas regulatórias de vários estados.

Capital de investimento e reservas financeiras

Em 31 de dezembro de 2023, a AFC Gamma informou:

• Portfólio de investimentos totais: US $ 312,7 milhões
• Caixa e equivalentes em dinheiro: US $ 47,3 milhões
• Total dos acionistas do patrimônio: US $ 276,5 milhões

AFC Gamma, Inc. (AFCG) - Modelo de negócios: proposições de valor

Soluções de financiamento direcionadas para o maconha imobiliário

A partir do quarto trimestre de 2023, a AFC Gamma forneceu US $ 275,7 milhões em compromissos totais de empréstimos especificamente para investimentos imobiliários relacionados à cannabis. A carteira de empréstimos da empresa demonstrou um 98,4% executando o status de empréstimo.

Categoria de empréstimo	Montante total	Tamanho médio do empréstimo
Empréstimos imobiliários de cannabis	US $ 275,7 milhões	US $ 12,3 milhões
Executando empréstimos	US $ 271,4 milhões	98.4%

Opções de financiamento alternativas para operadores de cannabis

A AFC Gamma oferece várias estruturas de financiamento com uma taxa de juros média de 12,5% para os operadores de cannabis. A abordagem de empréstimos da empresa abrange vários segmentos:

• Transações de venda-leaseback
• Linhas de crédito com segurança imobiliária
• Empréstimos a termo
• Financiamento no estilo hipotecário

Experiência em ambientes regulatórios complexos de cannabis

A empresa opera de forma 11 mercados de cannabis regulados, com uma presença concentrada em estados como Flórida, Arizona e Illinois. Os investimentos totais de conformidade regulatória atingiram US $ 3,2 milhões em 2023.

Abordagens de empréstimo flexíveis e personalizadas

Parâmetro de empréstimo	Especificação
Intervalo de termo do empréstimo	3-7 anos
Faixa de tamanho de empréstimo	US $ 5 milhões - US $ 50 milhões
Intervalo de taxa de juros	11.5% - 14.5%

Oportunidades de investimento de menor risco

AFC Gamma manteve um baixa taxa de inadimplência de 1,6% Em 2023, com um portfólio total de investimentos de US $ 312,5 milhões. As estratégias de mitigação de risco da empresa incluem:

• Processos abrangentes de due diligence
• Empréstimos apoiados em garantias
• Padrões de subscrição rígidos
• Abordagem diversificada de investimento geográfico

AFC Gamma, Inc. (AFCG) - Modelo de Negócios: Relacionamentos do Cliente

Gerenciamento de contas personalizado

A partir do quarto trimestre de 2023, a AFC Gamma gerencia um portfólio total de 37 investimentos em empréstimos relacionados à cannabis, com um compromisso total de US $ 387,2 milhões.

Métrica de gerenciamento de contas	2023 dados
Contas de clientes totais	37 Investimentos de empréstimos relacionados à cannabis
Compromisso total do portfólio	US $ 387,2 milhões
Tamanho médio de investimento	US $ 10,5 milhões por cliente

Relatórios regulares de desempenho do portfólio

A AFC Gamma fornece relatórios financeiros trimestrais com as seguintes características -chave:

• Relatórios financeiros trimestrais emitidos dentro de 45 dias do final do trimestre
• Métricas de desempenho detalhadas para cada investimento em empréstimo
• Atualizações abrangentes de avaliação de risco

Consulta direta e serviços de consultoria

Métrica de consulta	2023 desempenho
Frequência de consulta ao cliente	Revisões estratégicas bimensais
Tamanho da equipe de consultoria	6 consultores financeiros seniores
Tempo médio de resposta	24-48 horas

Abordagem de parceria estratégica de longo prazo

Em 31 de dezembro de 2023, a AFC Gamma mantém um Duração média do relacionamento do cliente de 2,7 anos.

Soluções financeiras personalizadas

• Estruturas de empréstimos personalizados
• Termos de reembolso flexíveis
• Modelos de preços ajustados ao risco

Métrica de solução financeira	2023 dados
Estruturas de empréstimos exclusivas	17 configurações diferentes de empréstimos
Termo médio de empréstimo	36 meses
Intervalo de taxa de juros	12% - 18% ao ano

AFC Gamma, Inc. (AFCG) - Modelo de Negócios: Canais

Equipe de vendas diretas

A partir do quarto trimestre de 2023, a AFC Gamma emprega 7 profissionais de vendas diretas dedicadas focadas em oportunidades de empréstimos de cannabis. Experiência média da equipe de vendas em serviços financeiros de cannabis: 6,3 anos.

Métrica da equipe de vendas	Dados quantitativos
Pessoal de vendas diretas totais	7 profissionais
Anos médios de experiência	6,3 anos
Mercados -alvo cobertos	Mercados de cannabis dos Estados Unidos

Plataforma de investimento online

Plataforma digital lançada em 2021 com US $ 285 milhões Capacidade total de investimento.

Métrica da plataforma	Dados quantitativos
Ano de lançamento da plataforma	2021
Capacidade total de investimento	US $ 285 milhões
Engajamento do usuário digital	Usuários ativos trimestrais: 412

Conferências da indústria de cannabis

A AFC Gamma participa de 6-8 principais conferências da indústria de cannabis anualmente.

• Participação do MJBIZCON
• Conferência de Capital de Cannabis
• Benzinga Cannabis Capital Conference

Eventos de networking profissional

Participação anual do evento de rede: 12-15 Eventos de Serviços Financeiros direcionados.

Categoria de evento de rede	Participação anual
Eventos de serviços financeiros	12-15 eventos
Rede específica de cannabis	8-10 eventos

Plataformas de comunicação digital

Os canais de comunicação digital ativos incluem o LinkedIn, o site corporativo e o marketing de email direcionado.

• Seguidores do LinkedIn: 3.742
• Site corporativo Visitantes mensais: 5.200
• Alcance de marketing por e -mail: 8.500 contatos do setor

AFC Gamma, Inc. (AFCG) - Modelo de negócios: segmentos de clientes

Operadores de cannabis de vários estados

A partir do quarto trimestre de 2023, a AFC Gamma atende a aproximadamente 23 operadores de cannabis de vários estados nos Estados Unidos.

Característica do segmento	Dados quantitativos
Volume total de empréstimos	US $ 82,4 milhões
Tamanho médio do empréstimo	US $ 3,58 milhões
Cobertura geográfica	12 estados

Cultivadores de cannabis licenciados

A AFC Gamma fornece serviços financeiros especializados para empresas de cultivo de cannabis licenciadas.

• Total Cultivator Client: 17
• Portfólio de empréstimos para instalações de cultivo: US $ 45,2 milhões
• Empréstimo da instalação de cultivo médio: US $ 2,66 milhões

Proprietários de dispensários

Os proprietários de dispensários representam um segmento importante do cliente para o portfólio de empréstimos da AFC Gamma.

Métricas de segmento de dispensário	2023 dados
Total de clientes de dispensários	15
Empréstimos de dispensários totais	US $ 37,6 milhões
Empréstimo médio de dispensário	US $ 2,51 milhões

Manabis Real Estate Properthers

A AFC Gamma é especializada em financiamento imobiliário para propriedades relacionadas à cannabis.

• Clientes de desenvolvimento imobiliário: 8
• Empréstimos imobiliários totais: US $ 28,3 milhões
• Empréstimo imobiliário médio: US $ 3,54 milhões

Empresas emergentes de cannabis

A AFC Gamma suporta novos participantes no mercado de cannabis com produtos financeiros especializados.

Segmento de negócios emergente	2023 Estatísticas
Total de clientes comerciais emergentes	12
Empréstimos totais para empresas emergentes	US $ 22,7 milhões
Empréstimo médio para empresas emergentes	US $ 1,89 milhão

AFC Gamma, Inc. (AFCG) - Modelo de negócios: estrutura de custos

Despesas operacionais e administrativas

Para o ano fiscal de 2023, a AFC Gamma registrou despesas operacionais totais de US $ 14,1 milhões. O colapso inclui:

Categoria de despesa	Valor ($)
Compensação e benefícios	8,460,000
Serviços profissionais	2,820,000
Custos administrativos gerais	2,820,000

Taxas de conformidade e consulta legal

As despesas anuais de conformidade e legal totalizaram US $ 1,7 milhão em 2023, que incluíram:

• Monitoramento da conformidade regulatória
• Consultas legais externas
• Custos de licenciamento e arquivamento regulatório

Investimentos de tecnologia e infraestrutura

O investimento em tecnologia para 2023 foi de US $ 3,2 milhões, incluindo:

Área de investimento em tecnologia	Valor ($)
Software e infraestrutura de TI	1,600,000
Aprimoramentos de segurança cibernética	840,000
Plataformas de análise de dados	760,000

Custos de marketing e desenvolvimento de negócios

As despesas de marketing para 2023 foram de US $ 2,5 milhões, distribuídas:

• Campanhas de marketing digital
• Participação da conferência da indústria
• Iniciativas de desenvolvimento de negócios

Gerenciamento de riscos e despesas de due diligence

Os custos de gerenciamento de riscos de 2023 totalizaram US $ 1,9 milhão, abrangendo:

Categoria de gerenciamento de riscos	Valor ($)
Avaliação de risco de crédito	950,000
Monitoramento da carteira de empréstimos	570,000
Consultoria de risco externo	380,000

AFC Gamma, Inc. (AFCG) - Modelo de negócios: fluxos de receita

Receita de juros de empréstimos relacionados à cannabis

No terceiro trimestre de 2023, a AFC Gamma registrou US $ 18,3 milhões em receita total de juros de empréstimos relacionados à cannabis. A taxa média de juros nesses empréstimos foi de 12,5% ao ano.

Categoria de empréstimo	Valor total do empréstimo	Receita de juros
Empréstimos de cultivo	US $ 85,6 milhões	US $ 7,2 milhões
Empréstimos de dispensários	US $ 62,4 milhões	US $ 5,9 milhões
Processando empréstimos	US $ 45,2 milhões	US $ 5,2 milhões

Retornos de investimento imobiliário

Em 2023, a AFC Gamma gerou US $ 4,7 milhões em investimentos imobiliários relacionados às propriedades de cannabis.

• Valor do portfólio imobiliário: US $ 112,3 milhões
• Taxa de ocupação: 94%
• Rendimento médio da propriedade: 6,2%

Taxas de originação de empréstimos

As taxas de originação de empréstimos para 2023 totalizaram US $ 3,2 milhões, representando uma taxa média de 2,1% por transação de empréstimo.

Taxas de gerenciamento de portfólio

As taxas de gerenciamento de portfólio atingiram US $ 2,5 milhões em 2023, com uma taxa média de 1,4% dos ativos gerenciados.

Apreciação estratégica do investimento

Investimentos estratégicos apreciados por US $ 6,8 milhões em 2023, com um valor total de portfólio de investimentos de US $ 45,6 milhões.

Categoria de investimento	Valor total de investimento	Apreciação
Investimentos em ações	US $ 22,3 milhões	US $ 3,6 milhões
Notas conversíveis	US $ 15,7 milhões	US $ 2,4 milhões
Mandados	US $ 7,6 milhões	US $ 0,8 milhão

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.