Chicago Atlantic BDC, Inc. (NASDAQ:LIEN), a specialty finance firm focused on direct loans to middle-market and cannabis companies, announced its financial results Thursday for the third quarter ended September 30, 2024. The company highlighted a $3.2 million investment income and completed a significant Loan Portfolio Acquisition that increased its net assets to approximately $302 million.
Q3 2024 Financial Highlights
- Total investment income: $3.2 million
- Net investment income: $0.0 million, or $0.00 per share
- Investment portfolio: $55.8 million at fair value
- Net asset value ("NAV") per share: $13.28 on September 30, 2024
Diversification Grows With New Portfolio Companies
The acquisition involved purchasing a loan portfolio from Chicago Atlantic Loan Portfolio, LLC in exchange for newly issued common stock. This transaction expanded the company's investments to 28 portfolio companies from the previous seven, enhancing its diversification and scale.
The company also rebranded from Silver Spike Investment Corp. to Chicago Atlantic BDC, reflecting its strategic focus and alignment with the Chicago Atlantic platform. The ticker symbol changed to "LIEN" effective October 2, 2024.
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The company reported zero net investment income for the quarter, impacted by $2.4 million in expenses related to the acquisition. The investment portfolio at fair value stood at $55.8 million as of September 30, comprising first lien senior secured loans, secured notes, and equity securities.
Management Commentary
"LIEN is the only publicly listed BDC primarily focused on lending to cannabis companies and is a primary source of capital for high quality companies in both the cannabis and other typically underserved sectors," said Scott Gordon, executive chairman and co-chief investment officer. He emphasized the company's strengthened position to meet borrowers' capital needs across industries.
"We are in an exciting time in the cannabis sector with federal and state regulatory environments becoming more favorable," noted CEO Andreas Bodmeier, highlighting opportunities in time-sensitive and complex investments that offer attractive risk-adjusted returns.
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As of September 30, the company had $30.1 million in available liquidity. Post-quarter, it funded three investments totaling $14.5 million and received $9 million from the repayment of one investment.
LIEN Price Action
LIEN's shares were trading 0.08% lower at $12.81 per share at the time of this writing around 12:15 AM ET Friday.
- Chicago Atlantic Real Estate Net Income Increases 19% YoY, Expands Cannabis Loan Portfolio
- Chicago Atlantic Secures BBB+ Rating And $50M Loan To Enhance Liquidity In Cannabis Lending
Photo: Courtesy of C.Aphirak via Shutterstock.
