Advanced Flower Capital (AFC) is a specialty lender focused on providing senior secured loans to cannabis operators in U.S. states where medical and/or adult-use cannabis is legal. AFC's borrowers are state-compliant cannabis companies that cannot access traditional bank financing due to federal illegality, and AFC fills this gap as an institutional lender. AFC lends primarily to vertically integrated operators — those that cultivate, process, and sell cannabis — and structures loans as senior secured debt backed by real estate, equipment, cash flows, and cannabis license value. AFC targets loans above $10M principal to borrowers with $5M–$50M in EBITDA, with maturities of two to five years. AFC earns revenue through interest income, origination fees, and exit fees, with its cannabis loan portfolio historically yielding approximately 17–18%. Effective January 1, 2026, AFC converted from a mortgage REIT to a BDC, which is a significant structural shift: as a REIT, AFC was limited to lending against real estate collateral, excluding roughly two-thirds of cannabis operators. As a BDC, AFC can now lend to cannabis operators without real estate coverage and to middle-market companies outside cannabis entirely. AFC has built a non-cannabis direct lending pipeline targeting lower-middle-market businesses with $5M–$50M in EBITDA and recurring revenue characteristics. AFC is externally managed, and its adviser earns a base management fee of 1.5% per year on gross assets plus incentive fees tied to net investment income and capital gains.