Bonitas Research issues short opinion report on AFC Gamma

AFC Gamma, a real estate investment trust with a $400M loan portfolio concentrated amongst multi-state cannabis operators collateralized by cultivation facilities, cannabis licenses and real estate, materially overstated its investment income and understated portfolio losses in order to pay out exorbitant fees to CEO and Chairman Leonard Tannenbaum’s AFC Management at the expense of AFCG shareholders, says Bonitas Research in a short opinion report. The firm questions the authenticity of AFCG’s purported cash balance, and says “other red flags exist,” including that AFCG misled investors about the independence of its board of directors, audit, and valuation committee members.