Shareholder Vote Sets Stage for AFC Gamma’s Strategic Transformation

A pivotal moment has arrived for AFC Gamma as shareholders cast their votes today on a fundamental corporate restructuring. The company is seeking approval to convert from a real estate investment trust (REIT) to a business development company (BDC), a move unanimously endorsed by the board of directors. All necessary proposals require shareholder authorization during this special virtual meeting.

This structural shift represents a complete strategic overhaul for the specialty finance company. Rather than maintaining its exclusive focus on real estate-secured lending, AFC Gamma aims to diversify its investment approach under the BDC model. Company leadership anticipates enhanced operational flexibility within the rapidly evolving cannabis industry and improved risk management through portfolio diversification.

Two critical items dominate the voting agenda: establishing a new investment advisory arrangement with AFC Management LLC and implementing a reduced asset coverage ratio as permitted under the Investment Company Act of 1940. Shareholders of record as of September 15, 2025, are eligible to participate in the virtual gathering.

Market Reaction and Financial Performance

The proposed transition would fundamentally alter AFC Gamma's operational framework. While operating as a REIT, the company specialized in providing real estate financing to licensed cannabis operators. The BDC structure would authorize investments across a wider spectrum of developing businesses, representing a strategic pivot designed to optimize capital allocation and accelerate growth.

Should investors sell immediately? Or is it worth buying AFC Gamma?

Market response to this substantial directional change remains uncertain. Shares concluded yesterday's trading session at $3.21, registering a 0.94% gain. The immediate market reaction following today's vote outcome will provide crucial insight into investor sentiment regarding the strategic shift.

Upcoming Earnings Release

Another significant milestone approaches next week when AFC Gamma discloses quarterly results on Wednesday, November 12. Market experts project earnings of $0.190 per share. Whether the company meets these expectations—and whether such performance would be sufficient to propel the stock from its current trading range—remains to be seen.

The coming days will establish the company's trajectory: first through shareholder endorsement of the strategic conversion, then through the financial validation of quarterly earnings. For investors, both events represent critical developments worth monitoring closely.