The world of cannabis stocks was broadened on Friday with a new arrival. AFC Gamma (Nasdaq:AFCG), a company that specializes in real estate financing for the marijuana industry, started trading on the Nasdaq following its initial public offering (IPO).
It was an auspicious debut. The company’s IPO price was $19 per share, and at Friday’s close the stock had risen to $23.
AFC Gamma had timing on its side, as cautious optimism has returned to marijuana stocks. Investors are cheered by the recent legalization of recreational cannabis in certain states (Virginia being the latest example), plus speculation that the famously dysfunctional New York state government will manage to flip the recreational switch there. On the national level, several top senators last month indicated they would soon push for cannabis reform at the federal level.