Chris Muller's questions to Advanced Flower Capital (AFCG) leadership • Q2 2025
Question
Chris Muller from Citizens JMP questioned if recent rescheduling discussions have spurred borrower interest, the drivers behind the increased CECL reserve, and how the BDC conversion might affect credit facilities and long-term portfolio composition.
Answer
CEO Daniel Neville noted that the market is in a 'holding pattern' regarding rescheduling, with no significant change in activity yet. CFO Brandon Hetzel attributed the higher CECL reserve to loan-specific fundamentals rather than macro factors. President and CIO Robyn Tannenbaum explained that while a BDC structure could offer better financing terms, new credit lines remain constrained by bank participation in the cannabis sector. She stated it is too early to predict the future portfolio mix.