Advanced Flower Capital Shareholders Approve Conversion to Business Development Company
Advanced Flower Capital (Nasdaq: AFCG) announced shareholders approved proposals to convert the company from a REIT to a business development company (BDC) under the Investment Company Act of 1940. The approvals cover a new 1940 Act-compliant investment advisory agreement with AFC Management and application of reduced asset coverage requirements to align leverage with other BDCs. The vote occurred at a Special Meeting of Shareholders. The Conversion remains subject to certain board approvals and is expected to complete in Q1 2026. Upon completion the company will continue trading on Nasdaq under the ticker AFCG. AFC specializes in senior secured loans, including to cannabis operators, and is based in West Palm Beach, Florida.
Advanced Flower Capital (Nasdaq: AFCG) ha annunciato che gli azionisti hanno approvato le proposte per convertire la società da REIT a una business development company (BDC) ai sensi del Investment Company Act del 1940. Le approvazioni riguardano un nuovo accordo di consulenza d'investimento conforme al 1940 Act con AFC Management e l'applicazione di requisiti di copertura degli attivi ridotti per allineare l'indebitamento agli altri BDC. Il voto si è svolto in una Special Meeting degli azionisti. La Conversione rimane soggetta ad alcune approvazioni del consiglio ed è prevista completarsi nel Q1 2026. Una volta completata, la società continuerà a negoziare su Nasdaq sotto il ticker AFCG. AFC è specializzata in prestiti garantiti senior, inclusi a operatori di cannabis, ed ha sede a West Palm Beach, Florida.
Advanced Flower Capital (Nasdaq: AFCG) anunció que los accionistas aprobaron las propuestas para convertir la empresa de REIT a una empresa de desarrollo comercial (BDC) conforme a la Investment Company Act de 1940. Las aprobaciones cubren un nuevo acuerdo de asesoría de inversiones conforme a la Ley de 1940 con AFC Management y la aplicación de requisitos de cobertura de activos reducidos para alinear el apalancamiento con otros BDC. La votación se llevó a cabo en una Reunión Especial de Accionistas. La Conversión sigue sujeta a ciertas aprobaciones del consejo y se espera que se complete en Q1 2026. Una vez completada, la empresa continuará cotizando en Nasdaq bajo el ticker AFCG. AFC se especializa en préstamos garantizados senior, incluso a operadores de cannabis, y tiene su sede en West Palm Beach, Florida.
Advanced Flower Capital (나스닥: AFCG)은 주주들이 회사의 구조를 REIT에서 비즈니스 개발 회사(BDC)로 전환하는 제안을 승인했다고 발표했습니다, 1940년 투자회사법에 따라. 승인은 AFC Management와의 1940 Act에 준하는 투자 자문 계약의 체결과 다른 BDC와의 레버리지 정렬을 위한 자산 커버리지 요건 축소의 적용을 포함합니다. 투표는 주주 특별회에서 이루어졌습니다. 전환은 이사회의 특정 승인을 필요로 하며 2026년 1분기(Q1 2026)에 완료될 것으로 예상됩니다. 완료되면 회사는 주식 코드 AFCG로 나스닥에서 거래를 계속합니다. AFC는 시니어 담보 대출, 특히 대마초 사업자에게도 대출하는 것을 전문으로 하며, 플로리다 주 웨스트팜비치에 본사를 두고 있습니다.
Advanced Flower Capital (NYSE/Nasdaq: AFCG) a annoncé que les actionnaires ont approuvé des propositions visant à convertir la société d'un REIT en une société de développement commercial (BDC) conformément à la Investment Company Act de 1940. Les approbations portent sur un nouvel contrat de conseil en investissements conforme à la loi de 1940 avec AFC Management et l'application de normes de couverture d'actifs réduites pour aligner l'endettement sur celui d'autres BDC. Le vote a eu lieu lors d'une Réunion spéciale des actionnaires. La conversion reste soumise à certaines approvals du conseil et devrait être achevée au T1 2026. Une fois terminée, la société continuera à être cotée sur le Nasdaq sous le ticker AFCG. AFC se spécialise dans les prêts garantis seniors, y compris aux opérateurs de cannabis, et est basée à West Palm Beach, en Floride.
Advanced Flower Capital (Nasdaq: AFCG) gab bekannt, dass die Aktionäre Vorschläge zur Umwandlung des Unternehmens von einer REIT in eine Business Development Company (BDC) gemäß dem Investment Company Act von 1940 genehmigt haben. Die Genehmigungen umfassen ein neues Investment Advisory Agreement, das dem 1940 Act entspricht mit AFC Management und die Anwendung von reduzierten Asset-Coverage-Anforderungen, um die Verschuldung mit anderen BDCs in Einklang zu bringen. Die Abstimmung fand bei einer Sonderversammlung der Aktionäre statt. Die Umwandlung bleibt bestimmten Beschlüssen des Vorstands vorbehalten und soll voraussichtlich im Q1 2026 abgeschlossen sein. Nach Abschluss wird das Unternehmen weiterhin unter dem Ticker AFCG an der Nasdaq gehandelt. AFC ist auf senior secured loans spezialisiert, auch an Cannabis-Betreiber, und hat seinen Sitz in West Palm Beach, Florida.
Advanced Flower Capital (ناسداك: AFCG) أعلن أن المساهمين اعتمدوا مقترحات لتحويل الشركة من REIT إلى شركة تطوير أعمال (BDC) وفقًا لقانون شركات الاستثمار لعام 1940. تغطي الموافقات اتفاقية استشارات استثمارية متوافقة مع قانون 1940 مع AFC Management وتطبيق متطلبات تغطية الأصول المخفضة لمواءمة الرافعة مع شركات BDC أخرى. تم التصويت في اجتماع خاص للمساهمين. لا تزال عملية التحويل خاضعة لموافقات مجلس الإدارة ومن المتوقع أن تكتمل في الربع الأول من 2026. عند الإكمال ستستمر الشركة في التداول في ناسداك تحت رمز التداول AFCG. تختص AFC بالقروض المضمونة من الفئة العليا، بما في ذلك للمشغلين في قطاع القنب، ومقرها في ويست بالم بيتش، فلوريدا.
- Shareholders approved Conversion from REIT to BDC
- New 1940 Act-compliant advisory agreement approved
- Reduced asset coverage aligns leverage with peer BDCs
- Conversion expected to complete in Q1 2026
- Conversion remains subject to additional Board approvals
- Reliance on Manager to source suitable loan opportunities
- Performance exposed to demand for cannabis facilities
- Credit losses and CECL reserve estimates could affect results
Insights
Conversion from REIT to BDC expands permissible investments and leverage; closing expected in
Advanced Flower Capital will shift from a REIT to a BDC under the Investment Company Act of 1940, enabling it to operate under reduced asset coverage rules and a new 1940 Act‑compliant advisory agreement. This structural change legally permits a broader investment remit beyond real‑estate‑backed loans and aligns the company’s leverage framework with peer BDCs.
The outcome depends on board approvals, final SEC filings, and the exact terms of the new advisory agreement; absent those details, execution risk remains. The statement also highlights dependence on the manager’s ability to source and manage suitable loans and on demand in the company’s target markets.
Watch for the filed final voting results and the Board’s remaining approvals, expected filings with the SEC, and the stated completion window in
New Structure is Expected to Position the Company to Pursue Sustainable Growth and Long-Term Shareholder Value
WEST PALM BEACH, Fla., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq: AFCG) (“Advanced Flower Capital”, “AFC” or the “Company”) today announced that shareholders have approved all proposals related to the Company’s previously announced plan to convert from a real estate investment trust (“REIT”) to a business development company (“BDC”) regulated under the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Conversion”). The proposals included both the approval of a new 1940 Act-compliant investment advisory agreement between the Company and its external manager, AFC Management, LLC, and the application to the Company of the reduced asset coverage requirements for BDCs permitted under the 1940 Act, aligning the Company’s leverage parameters with those of other BDCs, in each case as described in the Company’s proxy statement filed with the U.S. Securities and Exchange Commission (the “SEC”). The vote, held at the Company’s Special Meeting of Shareholders, represents a significant milestone in AFC’s strategic evolution.
“We appreciate the continued support of our shareholders, which underscores confidence in our long-term vision for AFC,” said Leonard M. Tannenbaum, CFA, Chairman of the Board of Directors. “Converting to a BDC will allow us to expand our investable scope beyond real estate-backed loans and pursue a broader set of opportunities across the market, which we believe will strengthen AFC’s ability to generate consistent, risk-adjusted returns.”
Final voting results from the Special Meeting will be filed with the SEC.
The Conversion, which remains subject to the approval of certain matters by AFC’s Board of Directors, is expected to be completed in the first quarter of 2026. Upon completion of the Conversion, AFC will continue to trade on the Nasdaq under its existing ticker symbol, AFCG.
About Advanced Flower Capital
Advanced Flower Capital Inc. (Nasdaq: AFCG) (“AFC” or the “Company”) is a leading commercial mortgage real estate investment trust (“REIT”) that primarily originates, structures, underwrites, invests in and manages senior secured mortgage loans and other types of loans and debt securities, with a specialization in loans to cannabis industry operators in states that have legalized medical and/or adult-use cannabis. Through its management team’s deep network and significant credit and cannabis expertise, AFC originates, structures, underwrites and manages loans ranging from
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our Manager to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; the demand for cannabis cultivation and processing facilities and dispensaries; management’s current estimate of expected credit losses and current expected credit loss reserve and other factors could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in AFC’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of AFC’s most recently filed periodic reports on Form 10-K, Form 10-Q and subsequent filings. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect AFC. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact
Robyn Tannenbaum
561-510-2293
ir@advancedflowercapital.com
Media Contact
Collected Strategies
Jim Golden / Jack Kelleher
AFCG-CS@collectedstrategies.com
FAQ
What did Advanced Flower Capital (AFCG) shareholders approve on November 6, 2025?
When is the AFCG conversion to a BDC expected to be completed?
Will Advanced Flower Capital keep its ticker after converting to a BDC?
How will the BDC conversion affect AFCG's leverage rules?
What investment scope changes will AFCG pursue after converting to a BDC?
What are the main risks cited for AFCG after the conversion?
