Advanced Flower Capital

AFC captures double-digit yields and fees due to risk, complexity and limited bank participation. As of March 31, 2026, performing assets yielded ~12.5% excluding nonaccruals. While that demonstrates current market pricing power, it is tied to borrower risk and regulatory constraints rather than a differentiated platform advantage.

If cannabis banking normalizes (e.g., rescheduling to Schedule III or future legislative changes), spreads could compress as capital availability improves. Conversely, ongoing distress can force concessions.

Net effect: moderate pricing power that is cyclical and policy-sensitive, with upside if AFC scales into less-contested niches in broader private credit.