SCHEDULE: Tannenbaum Boosts AFC Holdings to 27.9%

Leonard M. Tannenbaum increased his beneficial ownership in Advanced Flower Capital Inc. to 27.9% through recent open market purchases.

Summary

• Leonard M. Tannenbaum, the Reporting Person, has increased his beneficial ownership in Advanced Flower Capital Inc. (the "Issuer") by approximately 1.6 percentage points since the last Schedule 13D/A filing.
• The aggregate beneficial ownership of Common Stock by Mr. Tannenbaum now stands at 6,553,506 shares, representing 27.9% of the Issuer's outstanding Common Stock.
• The increase in ownership resulted from multiple open market purchases of Common Stock using personal funds between March 12, 2026, and March 24, 2026.
• These purchases included 377,525 shares acquired at prices ranging from $2.48 to $2.60 per share.
• Mr. Tannenbaum directly holds 6,373,106 shares with sole voting and dispositive power.
• An additional 180,400 shares are held by the Tannenbaum Family Foundation, for which Mr. Tannenbaum serves as President, over which he disclaims beneficial ownership except to the extent of his pecuniary interest.
• The filing excludes 218,907 shares held by Ms. Robyn Tannenbaum, Mr. Tannenbaum's spouse, over which he disclaims beneficial ownership.
• The percentage of class is based on 23,528,844 shares of Common Stock outstanding as of December 31, 2025, as reported in the Issuer's Annual Report on Form 10-K filed on March 4, 2026.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive signal. The substantial increase in beneficial ownership by a key insider, Leonard M. Tannenbaum, indicates high confidence in the company's valuation and future prospects, suggesting potential undervaluation at current prices.

Positives

• Significant insider buying by Leonard M. Tannenbaum, a key figure, signals strong confidence in the company's future prospects.
• The increase of 1.6 percentage points in beneficial ownership demonstrates a continued commitment from a major shareholder.
• Mr. Tannenbaum's aggregate beneficial ownership of 27.9% represents a substantial stake, aligning his interests closely with other shareholders.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that significant insider buying, especially by a key figure like Leonard M. Tannenbaum, often signals confidence in the company's future prospects, particularly within the evolving cannabis finance sector. This move could be interpreted as a bullish signal for Advanced Flower Capital Inc. in a market segment that continues to attract investor interest despite regulatory complexities.

Comparison to Industry Standards

• StockSavvy.ai observes that a 27.9% beneficial ownership stake is substantial for an individual, indicating a high level of commitment from a key insider. This level of ownership is significantly higher than typical institutional investor stakes, which often range from 5-15% for active funds, and far exceeds the average insider ownership in many publicly traded companies.
• For example, in the broader financial services sector, individual insider ownership rarely approaches this level without the individual being the founder or a controlling shareholder. This suggests a strong alignment of interests between Mr. Tannenbaum and the company's long-term success, potentially reducing agency risk compared to companies with more dispersed ownership.
• Compared to other cannabis-focused finance companies, such a concentrated insider stake could provide stability and a clear strategic direction, differentiating AFC from peers where ownership might be more fragmented.

Stakeholder Impact

• Shareholders may view the increased insider ownership as a positive sign of confidence, potentially boosting investor sentiment and demand for the stock.
• The substantial stake held by Mr. Tannenbaum could lead to greater stability in strategic decision-making, benefiting the company's long-term direction.

Key Dates

Recommendation

The significant increase in beneficial ownership by Leonard M. Tannenbaum, a key insider, to nearly 28% of the company's common stock, signals strong confidence in Advanced Flower Capital Inc.'s future performance. This substantial insider buying, executed through open market purchases using personal funds, suggests that management believes the stock is undervalued and has significant upside potential. Such a move typically aligns management's interests more closely with shareholders and is often a precursor to positive developments, making it a compelling 'strong buy' signal for seasoned investors.

Keywords

Advanced Flower Capital, AFC, Leonard Tannenbaum, Schedule 13D, insider buying, beneficial ownership, cannabis finance, stock purchases