Advanced Flower AFCG Plunges 20.40% on Dividend Announcement

Advanced Flower(AFCG)跌20.40%。，The share price fell to its lowest level since April 2025 today, with an intraday decline of 20.32%.

The strategy of buying AFCG shares after they reached a recent low and holding for 1 week showed poor performance over the past 5 years. The annualized return was -17.1%, significantly underperforming the market. This indicates that relying on recent price lows as a decision metric and holding for a short duration is not a viable strategy for AFCG.

Advanced Flower Capital's stock price experienced a significant decline today, driven by several key factors. The company announced a quarterly dividend of $0.15 per share for Q2 2025, which will be payable on July 15, 2025. This dividend was influenced by a realized loss from a loan to Public Company A, as determined by the company's Board of Directors based on Distributable Earnings.

Additionally, Advanced Flower Capital expanded its senior secured revolving credit facility by $20 million, bringing the total to $50 million. This expansion, facilitated by an additional commitment from an FDIC-insured bank, aims to fund existing borrower commitments, originate new cannabis operator loans, and support working capital needs. This move represents a strengthening of AFC's lending platform and is expected to enhance its financial flexibility.

In its Q1 2025 financial results, Advanced Flower Capital reported a GAAP net income of $4.1 million and Distributable Earnings of $4.5 million. The company is strategically focused on reducing exposure to underperforming credits while maintaining disciplined debt capital provision to cannabis operators. This approach may affect investor sentiment and contribute to the stock price fluctuations observed today.