FARMACEUTICALRX, the leading natural and organic multistate vertically integrated medical marijuana operator in the United States (“FARMACEUTICALRX” or the “Company”), today announced that it has closed an up to $21 million senior secured term loan (the “Senior Term Loan”) with AFC Gamma, Inc. (NASDAQ: AFCG) (“AFC”).
The Senior Term Loan proceeds will be used to fund construction of the Company’s processing and Level 1 cultivation facility in Ohio and for general working capital purposes. Upon certification of operations at the new facility, FARMACEUTICALRX’s Ohio operations will be vertically integrated. The Company will bring world-class cultivation and processing methods from the FARMACEUTICALRX of Pennsylvania operations to the new 100,000 square foot facility in East Liverpool, Ohio. The Company currently operates a highly rated dispensary in East Liverpool.
“We have secured funding to take advantage of the tremendous opportunity in Ohio and to build on the momentum and market-leading position we developed in Pennsylvania,” said Rebecca Myers, CEO and Founder of FARMACEUTICALRX. “We continue to expand strategically. Ohio is a very attractive limited license state and the right market for us. This financing with AFC reflects the confidence lenders have in the strong growth, cash flow generation and profitability that FARMACEUTICALRX has demonstrated. AFC understands our vision and the ability of our team to replicate its success in other markets and states. We are excited to partner with the AFC Team. We are continuing our commitment to innovation, to cultivating and producing premier high quality organic and craft medical marijuana products for our loyal customers, and to being disciplined stewards of capital for our shareholders,” stated Myers.