Story of Ohio, a subsidiary of Phoenix-based multistate cannabis operator Story Cannabis Co., has locked in a $15 million loan from Advanced Flower Capital. The funding aims to fuel its expansion in Ohio’s budding adult-use marijuana market, positioning the company for further growth in a competitive industry.
A Major Boost for Ohio’s Cannabis Market
Ohio’s cannabis industry is heating up, and Story of Ohio isn’t wasting any time. The $15 million loan from Advanced Flower Capital is a strategic move to strengthen its foothold by developing and acquiring marijuana retail locations. This expansion could make a significant impact on Ohio’s newly established adult-use cannabis market.
The financial backing comes at a crucial time. With Ohio’s marijuana laws evolving and demand surging, well-funded operators have a clear advantage. Story Cannabis Co. already has a presence in Arizona, Maryland, and New Jersey, and now it’s doubling down on Ohio’s market potential.
Secured Loan: A Smart Financial Play
A $15 million loan is no small sum, and Advanced Flower Capital isn’t taking any chances. The credit facility is fully secured by Story of Ohio’s assets, which include cannabis licenses and real estate in both Ohio and Georgia.
Daniel Neville, CEO of Advanced Flower Capital, praised Story Cannabis Co. as a “top private multistate cannabis operator” with a proven track record in a volatile market. His confidence in the company underscores the potential of Ohio’s cannabis industry.
Jason Vedadi, CEO of Story Cannabis Co., echoed this optimism, stating that the partnership allows the company to “identify and capitalize on key market opportunities.”
Who is Advanced Flower Capital?
For those unfamiliar, Advanced Flower Capital—also known as AFC Gamma—is a commercial mortgage real estate investment trust (REIT). It specializes in providing institutional loans to U.S. cannabis operators.
AFC Gamma trades on the Nasdaq under the ticker AFCG, making it one of the few financial institutions offering substantial funding to regulated marijuana businesses. As federal banking laws still make it difficult for cannabis companies to secure traditional loans, firms like AFC Gamma play a vital role in the industry.
What This Means for Ohio’s Cannabis Future
This funding move signals a few key trends in Ohio’s cannabis market:
- More Retail Locations: Expect to see more Story of Ohio dispensaries opening across the state.
- Increased Competition: Well-funded companies will have a leg up in securing prime real estate and licenses.
- Investor Confidence: AFC Gamma’s involvement highlights growing confidence in Ohio’s cannabis industry.
With adult-use sales expected to ramp up in the coming months, this loan could be just the beginning of bigger financial moves in Ohio’s cannabis space.