AFC Gamma, Inc. completes Spin-Off of Sunrise Realty Trust, Inc.(AFCG)

9일 미국 증권거래위원회에 따르면 AFC Gamma, Inc. (AFCG) announced on July 9, 2024, that it has successfully completed the previously announced spin-off of its commercial real estate portfolio into an independent, publicly-traded real estate investment trust (REIT), Sunrise Realty Trust, Inc. (SUNS). The AFC Gamma stockholders of record as of the close of business on July 8, 2024, received one share of SUNS common stock for every three shares of AFCG common stock held on the Record Date.

SUNS is now independently trading on the Nasdaq Capital Market under the symbol 'SUNS'. As a result of this spin-off, SUNS will operate as a standalone, publicly-traded company focusing on commercial real estate. This separation allows both AFCG and SUNS to focus on their respective core businesses and strategies.

SUNS and AFC Gamma entered into multiple agreements to facilitate the separation, including a Separation and Distribution Agreement and a Tax Matters Agreement. The provisions under these agreements delineate the transfer of assets, liabilities, indemnifications, and tax matters between the two entities.

AFCG will no longer consolidate the financial results of SUNS post-separation. Unaudited pro forma consolidated financial statements have been prepared, demonstrating the effects of the separation as if it occurred on January 1, 2023. For the three months ended March 31, 2024, AFCG reported interest income of $14,334,754 and a net loss of $1,114,318 after adjustments related to the spin-off.
Key management changes also took place with the spin-off. Jodi Hanson Bond and James Fagan resigned from AFC Gamma’s Board of Directors and joined the Board of Directors of SUNS. Alexander Frank was appointed to the Board of SUNS while continuing his directorship at AFCG. Leonard Tannenbaum was appointed Executive Chairman of SUNS and remains Executive Chairman and Chief Investment Officer of AFCG. Brandon Hetzel was appointed Chief Financial Officer and Treasurer of SUNS, and Robyn Tannenbaum was appointed President of SUNS.

This strategic spin-off is aimed at delivering greater value to shareholders by enabling AFCG and SUNS to pursue independent growth paths. Investors are advised to review the unaudited pro forma financial statements and related management discussions to make informed investment decisions.

#AFC Gamma #SUNS #spin-off #real estate portfolio #Nasdaq #Jodi Hanson Bond #James Fagan #Alexander Frank #Leonard Tannenbaum #Brandon Hetzel #Robyn Tannenbaum

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