Key Highlights

● Advanced Flower Capital signed Amendment Number Ten to its Loan and Security Agreement on September 25, 2026.

● Revolving commitments can rise temporarily from a base of $80 million to as much as $130 million.

● The extra $50 million is available only during defined quarterly windows, and otherwise the maximum reverts to $80 million.

● The amendment also sets conditions for an advance rate against credit facilities in the borrowing base and revises loan fees.

Advanced Flower Capital Inc. (NASDAQ:AFCG), a Maryland corporation trading on Nasdaq under the symbol AFCG, reported in a Form 8-K that it signed Amendment Number Ten to its Loan and Security Agreement on September 25, 2026. The amendment lets the size of the revolving credit commitments rise temporarily from a base of $80 million to as much as $130 million. It also sets conditions for an advance rate against credit facilities in the borrowing base and revises the loan fee structure. The filing was made under Items 1.01, 2.03 and 9.01 and was signed on September 29, 2026 by Brandon Hetzel, the company's Chief Financial Officer and Treasurer.

How the Commitment Works

The original Loan and Security Agreement is dated April 29, 2022, and the borrowers are Advanced Flower Capital Inc. and other borrowers party to it, with a group of lenders. The 8-K says the amendment increases aggregate revolver commitments to $130 million, consisting of an increase of up to $50 million on a quarterly basis.

The mechanics matter. The filing says that the maximum revolver amount will automatically be reduced to $80 million plus the Quarterly Temporary Increase Amount, not to exceed a maximum of $130 million, during any Quarterly Temporary Increase Period. At any other time, the maximum reverts to $80 million. In other words, $80 million is the standing size of the facility, and the added $50 million is available only during defined quarterly windows. The filing does not say when those periods begin and end, how the Quarterly Temporary Increase Amount is determined, or whether the company has requested any increase.

Advance Rates and Fees

Amendment Number Ten also sets conditions for the advance rate against credit facilities in the borrowing base. A borrowing base is a formula that limits how much can be drawn based on the value of eligible assets, and the advance rate is the percentage of an asset's value that can be borrowed against. The 8-K says only that conditions were set for that advance rate; it does not state the percentages or the conditions themselves.

The amendment also revises the loan fee structure. The filing does not list the new fees, the amounts payable or the parties to whom they are owed. Similarly, the report does not disclose the facility's maturity date, its interest rate, its detailed covenants or the stated purpose for the change. It does not name an administrative agent, arranger or bookrunner, and it refers to the lenders only as lenders party to the agreement.

Why It Was Reported

Items 1.01 and 2.03 cover the entry into or amendment of a material definitive agreement and the creation or change of a direct financial obligation. A revolving facility whose maximum size can vary by quarter is a change to the company's borrowing capacity. The full amendment is attached to the 8-K as an exhibit. The 8-K text itself is a summary and states no loan balances or outstanding borrowings.

Nothing in the report speaks to the company's financial results, portfolio, dividends or strategy. The 8-K does not say whether the amendment was requested by the company or the lenders, what balance is currently drawn, or how much of the additional capacity the company expects to use.

Exhibit Holds the Revolver's Temporary Increase Terms

The exhibit holds the definitive terms, including the timing of any temporary increase periods and the revised fee schedule.