Earnings Feed

AFCG

Financial Services

Advanced Flower Capital announced its intention to convert from a REIT to a business development company (BDC), subject to shareholder approval.
The conversion aims to enable AFC to invest in a broader range of assets, including non-real estate opportunities, addressing industry limitations.
Management believes the BDC structure will better position AFC to capitalize on sector tailwinds, especially if cannabis rescheduling occurs.
The expanded investment mandate will include direct lending outside cannabis, diversifying the company's risk profile.
The conversion is expected to occur in the first quarter of 2026, pending regulatory and shareholder approvals.
This strategic shift is driven by the high cost of capital and the limited real estate ownership among cannabis operators.

AMRK

Financial Services

23h

The company has completed three acquisitions in Q3 and is actively evaluating additional opportunities.
Management believes market slowdowns present favorable conditions for strategic acquisitions that are easier to digest.
The focus is on balancing capital allocation between inventory, acquisitions, and operational efficiencies.
The company sees ongoing opportunities in the pipeline, especially in higher-margin segments and emerging markets.
Management emphasizes that market conditions favor acquisitions that can be integrated and scaled during slower periods.