Advanced Flower Capital Inc.

Advanced Flower Capital Inc. is an institutional lender founded in July 2020 by experienced investment professionals. The company is a Maryland corporation and is managed externally by AFC Management, LLC. Effective January 1, 2026, Advanced Flower Capital Inc. elected to be regulated as a Business Development Company (BDC) under the Investment Company Act of 1940. For the year ended December 31, 2025, the company primarily originated, structured, underwrote, invested in, and managed senior secured loans and other mortgage loans and debt securities. It specializes in loans to cannabis industry operators in states where medical and/or adult-use cannabis is legal. During this period, the company's investment guidelines focused on deploying capital in lending opportunities, typically secured by real estate, equipment, cash flows, and license value. These opportunities were with (i) state law-compliant cannabis operators and ancillary cannabis companies and (ii) other public and privately held middle-market companies. The primary objective is to provide attractive risk-adjusted returns over time through cash distributions and capital appreciation. In 2025, this objective was primarily pursued by providing loans to state law-compliant cannabis companies. The loans originated during this period were mainly structured as senior loans, typically secured by real estate, equipment, cash flows, and the value of licenses (where applicable) and/or other assets of the loan parties, as permitted by applicable laws and regulations. Some cannabis-related borrowers have their equity securities listed for public trading on the Canadian Securities Exchange (CSE) in Canada and/or over-the-counter (OTC) in the United States.