Chicago Atlantic BDC, Inc. Reports Third Quarter 2024 Financial Results
Chicago Atlantic BDC (NASDAQ: LIEN) reported its Q3 2024 financial results with total investment income of $3.2 million and net investment income of $0.0 million. The investment portfolio stood at $55.8 million at fair value, with NAV per share at $13.28. On October 1, 2024, the company completed a significant Loan Portfolio Acquisition, increasing net assets to approximately $302 million and expanding portfolio companies from 7 to 28. The acquisition involved issuing 16,605,372 new shares, resulting in CALP owning 72.8% of outstanding shares. The company positions itself as the only publicly listed BDC primarily focused on cannabis lending.
Chicago Atlantic BDC (NASDAQ: LIEN) ha riportato i risultati finanziari del terzo trimestre del 2024, con un reddito totale da investimenti di 3,2 milioni di dollari e un reddito netto da investimenti di 0,0 milioni di dollari. Il portafoglio investimenti ammontava a 55,8 milioni di dollari a valore equo, con un NAV per azione di 13,28 dollari. Il 1° ottobre 2024, la società ha completato un'importante acquisizione di un portafoglio di prestiti, aumentando le attività nette a circa 302 milioni di dollari ed espandendo il numero di società in portafoglio da 7 a 28. L'acquisizione ha comportato l'emissione di 16.605.372 nuove azioni, facendo sì che CALP possieda il 72,8% delle azioni in circolazione. L'azienda si posiziona come l'unico BDC quotato in borsa focalizzato principalmente sui prestiti nel settore della cannabis.
Chicago Atlantic BDC (NASDAQ: LIEN) informó sus resultados financieros del tercer trimestre de 2024, con un ingreso total de inversiones de 3,2 millones de dólares y un ingreso neto de inversiones de 0,0 millones de dólares. La cartera de inversiones se situó en 55,8 millones de dólares a valor justo, con un NAV por acción de 13,28 dólares. El 1 de octubre de 2024, la compañía completó una adquisición significativa de cartera de préstamos, aumentando los activos netos a aproximadamente 302 millones de dólares y expandiendo el número de compañías de cartera de 7 a 28. La adquisición implicó la emisión de 16.605.372 nuevas acciones, resultando en que CALP posea el 72,8% de las acciones en circulación. La compañía se posiciona como el único BDC cotizado públicamente centrado principalmente en el otorgamiento de préstamos para cannabis.
시카고 애틀랜틱 BDC (NASDAQ: LIEN)는 2024년 3분기 재무 결과를 보고했으며, 총 투자 수익은 320만 달러, 순 투자 수익은 0달러로 나타났습니다. 투자 포트폴리오는 공정 가치 기준으로 5,580만 달러에 달했으며, 주당 NAV는 13.28달러였습니다. 2024년 10월 1일, 이 회사는 중요한 대출 포트폴리오 인수를 완료하여 순 자산을 약 3억 2백만 달러로 증가시키고 포트폴리오 회사 수를 7개에서 28개로 확장했습니다. 이번 인수는 16,605,372주의 신규 주식 발행을 포함하여 CALP가 유통 주식의 72.8%를 소유하게 되었습니다. 이 회사는 주로 대마초 대출에 집중하는 유일한 상장 BDC로 자리잡고 있습니다.
Chicago Atlantic BDC (NASDAQ: LIEN) a publié ses résultats financiers du troisième trimestre 2024, affichant un revenu total d'investissement de 3,2 millions de dollars et un revenu net d'investissement de 0,0 million de dollars. Le portefeuille d'investissement s'élevait à 55,8 millions de dollars à la juste valeur, avec une NAV par action de 13,28 dollars. Le 1er octobre 2024, l'entreprise a achevé une acquisition significative de portefeuille de prêts, portant les actifs nets à environ 302 millions de dollars et augmentant le nombre d'entreprises du portefeuille de 7 à 28. L'acquisition a impliqué l'émission de 16.605.372 nouvelles actions, faisant de CALP le propriétaire de 72,8 % des actions en circulation. L'entreprise se positionne comme le seul BDC coté en bourse axé principalement sur le crédit aux entreprises de cannabis.
Chicago Atlantic BDC (NASDAQ: LIEN) hat seine finanziellen Ergebnisse für das 3. Quartal 2024 bekannt gegeben, mit einem Gesamtertrag aus Investitionen von 3,2 Millionen Dollar und einem Nettoertrag aus Investitionen von 0,0 Millionen Dollar. Das Investitionsportfolio wies einen beizulegenden Zeitwert von 55,8 Millionen Dollar auf, mit einem NAV pro Aktie von 13,28 Dollar. Am 1. Oktober 2024 hat das Unternehmen eine bedeutende Übernahme eines Kreditportfolios abgeschlossen, wodurch das Nettovermögen auf etwa 302 Millionen Dollar erhöht wurde und die Portfoliounternehmen von 7 auf 28 erweitert wurden. Bei der Übernahme wurden 16.605.372 neue Aktien ausgegeben, wodurch CALP nun 72,8% der ausstehenden Aktien besitzt. Das Unternehmen positioniert sich als der einzige börsennotierte BDC, der sich hauptsächlich auf die Kreditvergabe im Cannabisbereich konzentriert.
- Significant portfolio expansion through Loan Portfolio Acquisition, increasing net assets from $82.5M to $302M
- Portfolio diversification improvement from 7 to 28 companies
- No loans on non-accrual status as of September 30, 2024
- Strong liquidity position with $30.1M in available cash equivalents
- NAV per share decreased from $13.56 to $13.28 quarter-over-quarter
- Net decrease in net assets from operations of $0.2M ($0.03 per share)
- Zero net investment income for Q3 2024
- Total expenses of $3.2M including $2.4M related to Loan Portfolio Acquisition
Insights
The Q3 results reveal a significant transformation for Chicago Atlantic BDC through its strategic Loan Portfolio Acquisition, expanding net assets from
The NAV decline to
NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Chicago Atlantic BDC, Inc. (“LIEN” or the “Company”) (NASDAQ: LIEN), formerly Silver Spike Investment Corp., a specialty finance company that has elected to be regulated as a business development company, today announced its financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights and Subsequent Events
- Total investment income of
$3.2 million - Net investment income of
$0.0 million , or$0.00 per share - Investment portfolio of
$55.8 million at fair value - Net asset value (“NAV”) per share was
$13.28 on September 30, 2024 - As previously announced, on October 1, 2024, the Company acquired a portfolio of loans (the “Loan Portfolio”) from Chicago Atlantic Loan Portfolio, LLC (“CALP”) in exchange for newly issued shares of the Company’s common stock (the “Loan Portfolio Acquisition”)
- As a result of the Loan Portfolio Acquisition, the Company had net assets of approximately
$302 million and investments in 28 portfolio companies as of October 1, 2024. In connection with the Loan Portfolio Acquisition, the Company was renamed “Chicago Atlantic BDC, Inc.,” and its ticker symbol was changed to “LIEN.” The changes to the Company’s name and ticker symbol became effective in the market at the open of business on October 2, 2024.
Scott Gordon, Executive Chairman and Co-Chief Investment Officer of the Company, commented, “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. The Loan Portfolio Acquisition has allowed us to increase the size of our net assets by more than three and half times to approximately
Andreas Bodmeier, Chief Executive Officer of the Company, noted, “We are in an exciting time in the cannabis sector with federal and state regulatory environments becoming more favorable, and the credit quality of borrowers improving in our markets. In the non-cannabis sectors we target, we are seeing lower middle-market and middle-market companies increasingly underserved by larger banks and private credit providers. Chicago Atlantic has carved a niche with opportunities that are time-sensitive, highly complex or in dislocated sectors where risk is fundamentally mispriced with attractive risk-adjusted returns. We look forward to the prospect of these opportunities contributing to the growth of LIEN.”
Loan Portfolio Acquisition Closing
On October 1, 2024, the Company completed its previously announced acquisition from CALP of the Loan Portfolio in exchange for 16,605,372 newly issued shares of the Company’s common stock. The Loan Portfolio was determined by the Company to have a fair value of
Results of Operations
For the three months ended September 30, 2024, total investment income was
The Company recorded a net unrealized loss of
Net Asset Value
As of September 30, 2024, NAV per share decreased to
Portfolio and Investment Activity
- As of September 30, 2024, the Company’s investment portfolio had an aggregate fair value of approximately
$55.8 million , comprising approximately$43.4 million in first lien, senior secured loans, approximately$11.7 million in secured notes, and approximately$0.7 million of equity securities across seven portfolio companies. - During the quarter ended September 30, 2024, the Company made one additional investment and funded a portion of one of its loan commitments.
- As of September 30, 2024, there were no loans on non-accrual status.
Liquidity and Capital Resources
As of September 30, 2024, the Company had
Subsequent Events
Subsequent to the quarter end, in addition to the Loan Portfolio Acquisition, the Company funded three investments with an aggregate value of
Conference Call and Quarterly Earnings Presentation
The Company will host a conference call and webcast to discuss the Company's third quarter 2024 financial results at 8:00 a.m. Eastern Time on Friday, November 8, 2024. Participants may register for the call here. A live webcast of the call will also be available on the Company’s website at lien.chicagoatlantic.com.
A replay of the call will be available at lien.chicagoatlantic.com by the end of day on November 8, 2024.
Call Details – Chicago Atlantic BDC, Inc. Third Quarter 2024 Financial Results:
- When: Friday, November 8, 2024
- Time: 8:00 a.m. ET
- Webcast Live Stream: https://edge.media-server.com/mmc/p/525dhocn
- Replay: lien.chicagoatlantic.com
LIEN posted its Third Quarter 2024 Earnings Presentation on the Events and Presentations page of its website, lien.chicagoatlantic.com. LIEN routinely posts important information for investors on its website. The Company intends to use this website as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. The Company encourages investors, analysts, the media and others interested in LIEN to monitor the Investor Relations page of its website, in addition to following its press releases, Securities and Exchange Commission (“SEC”) filings, publicly available earnings calls, presentations, webcasts and other information posted from time to time on the website. Please visit the IR Resources section of the website to sign up for email notifications.
About Chicago Atlantic BDC, Inc.
The Company is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, and has elected to be treated as a regulated investment company for U.S. federal income tax purposes. The Company’s investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies. The Company is managed by Chicago Atlantic BDC Advisers, LLC, an investment manager focused on the cannabis and other niche or underfollowed sectors. For more information, please visit lien.chicagoatlantic.com.
Forward-Looking Statements
Some of the statements in this communication constitute forward-looking statements because they relate to future events, future performance or financial condition of the Company or the Loan Portfolio Acquisition. The forward-looking statements may include statements as to: future operating results of the Company and distribution projections; business prospects of the Company and the prospects of its portfolio companies; and the impact of the investments that the Company expects to make. In addition, words such as “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this communication involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the ability to realize the anticipated benefits of the Loan Portfolio Acquisition; (ii) risks related to diverting management’s attention from ongoing business operations; (iii) the risk that stockholder litigation in connection with the Loan Portfolio Acquisition may result in significant costs of defense and liability; (iv) changes in the economy, financial markets and political environment, including the impacts of inflation and rising interest rates; (v) risks associated with possible disruption in the operations of the Company or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between Russia and Ukraine and the current conflict between Israel and Hamas), natural disasters or global health pandemics, such as the COVID-19 pandemic; (vi) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (vii) changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets that could result in changes to the value of the Company’s assets; (viii) elevating levels of inflation, and its impact on the Company, on its portfolio companies and on the industries in which it invests; (ix) the Company’s plans, expectations, objectives and intentions, as a result of the Loan Portfolio Acquisition; (x) the future operating results and net investment income projections of the Company; (xi) the ability of the Chicago Atlantic BDC Advisers, LLC (the “Adviser”) to locate suitable investments for the Company and to monitor and administer its investments; (xii) the ability of the Adviser or its affiliates to attract and retain highly talented professionals; (xiii) the business prospects of the Company and the prospects of its portfolio companies; (xiv) the impact of the investments that the Company expects to make; (xv) the expected financings and investments and additional leverage that the Company may seek to incur in the future; (xvi) conditions in the Company’s operating areas, particularly with respect to business development companies or regulated investment companies; (xvii) the realization generally of the anticipated benefits of the Loan Portfolio Acquisition and the possibility that the Company will not realize those benefits, in part or at all; (xviii) the performance of the loans included in the Loan Portfolio, and the possibility of defects or deficiencies in such loans notwithstanding the diligence performed by the Company and its advisors; (xix) the ability of the Company to realize cost savings and other management efficiencies in connection with the Loan Portfolio Acquisition as anticipated; (xx) the reaction of the trading markets to the Loan Portfolio Acquisition and the possibility that a more liquid market or more extensive analyst coverage will not develop for the Company as anticipated; (xxi) the reaction of the financial markets to the Loan Portfolio Acquisition and the possibility that the Company will not be able to raise capital as anticipated; (xxii) the strategic, business, economic, financial, political and governmental risks and other risk factors affecting the business of the Company and the companies in which it is invested as described in the Company’s public filings with the SEC and (xxiii) other considerations that may be disclosed from time to time in the Company’s publicly disseminated documents and filings. The Company has based the forward-looking statements included in this communication on information available to it on the date of this communication, and it assumes no obligation to update any such forward-looking statements. Although the Company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that the Company may make directly to you or through reports that the Company in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Contact
Tripp Sullivan
SCR Partners
LIEN@chicagoatlantic.com
| CHICAGO ATLANTIC BDC, INC. Statements of Assets and Liabilities | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | (unaudited) | |||||||
| Investments at fair value: | ||||||||
| Non-control/non-affiliate investments at fair value (amortized cost of | $ | 55,788,511 | $ | 54,120,000 | ||||
| Cash and cash equivalents | 30,111,563 | 32,611,635 | ||||||
| Interest receivable | 1,635,943 | 1,755,360 | ||||||
| Deferred offering costs | 1,125,739 | - | ||||||
| Other receivable | 401,313 | - | ||||||
| Prepaid expenses | 103,554 | 39,276 | ||||||
| Other assets | 50,000 | 50,000 | ||||||
| Deferred financing costs | 41,061 | - | ||||||
| Paydown receivable | 21,000 | - | ||||||
| Total assets | 89,278,684 | 88,576,271 | ||||||
| LIABILITIES | ||||||||
| Transaction fees payable related to the Loan Portfolio Acquisition | 4,795,549 | 711,264 | ||||||
| Offering costs payable | 986,806 | - | ||||||
| Management fee payable | 253,421 | 257,121 | ||||||
| Audit fees payable | 213,523 | 123,998 | ||||||
| Capital gains incentive fees payable | 125,048 | 87,583 | ||||||
| Legal fees payable | 88,435 | 84,824 | ||||||
| Administrator fees payable | 51,251 | 86,463 | ||||||
| Due to affiliate | 51,142 | - | ||||||
| Unearned interest income | 42,550 | - | ||||||
| Deferred financing costs payable | 41,061 | - | ||||||
| Directors fees payable | 25,992 | 94,760 | ||||||
| Other payables | 24,296 | 13,822 | ||||||
| Valuation fees payable | 22,468 | 24,675 | ||||||
| Professional fees payable | 17,500 | 17,233 | ||||||
| Income-based incentive fees payable | - | 1,511,253 | ||||||
| Distributions payable | - | 2 | ||||||
| Excise tax payable | - | 10,655 | ||||||
| Total liabilities | 6,739,042 | 3,023,653 | ||||||
| Commitments and contingencies | - | - | ||||||
| NET ASSETS | ||||||||
| Common Stock, | 62,149 | 62,149 | ||||||
| Additional paid-in-capital | 85,031,106 | 85,041,203 | ||||||
| Distributable earnings (Accumulated losses) | (2,553,613 | ) | 449,266 | |||||
| Total net assets | $ | 82,539,642 | $ | 85,552,618 | ||||
| Total liabilities and net assets | $ | 89,278,684 | 88,576,271 | |||||
| NET ASSET VALUE PER SHARE | $ | 13.28 | $ | 13.77 | ||||
| CHICAGO ATLANTIC BDC, INC. Statements of Operations (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| INVESTMENT INCOME | ||||||||||||||||
| Non-control/non-affiliate investment income | ||||||||||||||||
| Interest income | $ | 2,686,771 | $ | 2,885,725 | $ | 8,203,601 | $ | 8,106,013 | ||||||||
| Fee income | 489,176 | 31,250 | 813,926 | 162,500 | ||||||||||||
| Total investment income | 3,175,947 | 2,916,975 | 9,017,527 | 8,268,513 | ||||||||||||
| EXPENSES | ||||||||||||||||
| Transaction expenses related to the Loan Portfolio Acquisition | 2,429,993 | - | 5,069,062 | - | ||||||||||||
| Management fee | 253,421 | 264,565 | 745,876 | 760,473 | ||||||||||||
| Income-based incentive fees | - | 405,247 | 328,503 | 1,051,741 | ||||||||||||
| Audit expense | 95,675 | 223,982 | 299,225 | 409,365 | ||||||||||||
| Administrator fees | 98,489 | 84,617 | 298,132 | 250,314 | ||||||||||||
| Legal expenses | 60,200 | 148,292 | 200,073 | 334,308 | ||||||||||||
| Insurance expense | 66,939 | 67,122 | 199,430 | 202,597 | ||||||||||||
| Other expenses | 40,546 | 22,210 | 107,213 | 61,918 | ||||||||||||
| Director expenses | 25,992 | 38,223 | 80,311 | 105,913 | ||||||||||||
| Professional fees | 59,780 | 15,841 | 74,694 | 51,808 | ||||||||||||
| Valuation fees | 22,990 | 22,890 | 50,043 | 116,955 | ||||||||||||
| Capital gains incentive fees | (35,904 | ) | (5,000 | ) | 37,465 | - | ||||||||||
| Custodian fees | 12,000 | 12,000 | 35,850 | 36,000 | ||||||||||||
| Excise tax expense | 31,314 | - | 31,314 | - | ||||||||||||
| Total expenses | 3,161,435 | 1,299,989 | 7,557,191 | 3,381,392 | ||||||||||||
| NET INVESTMENT INCOME (LOSS) | 14,512 | 1,616,986 | 1,460,336 | 4,887,121 | ||||||||||||
| NET REALIZED GAIN (LOSS) FROM INVESTMENTS | ||||||||||||||||
| Non-controlled/non-affiliate investments | - | - | - | (210,767 | ) | |||||||||||
| Net realized gain (loss) from investments | - | - | - | (210,767 | ) | |||||||||||
| NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS | ||||||||||||||||
| Non-controlled/non-affiliate investments | (179,524 | ) | (343,104 | ) | 187,324 | 166,012 | ||||||||||
| Net change in unrealized appreciation (depreciation) from investments | (179,524 | ) | (343,104 | ) | 187,324 | 166,012 | ||||||||||
| Net realized and unrealized gains (losses) | (179,524 | ) | (343,104 | ) | 187,324 | (44,755 | ) | |||||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (165,012 | ) | $ | 1,273,882 | $ | 1,647,660 | $ | 4,842,366 | |||||||
| NET INVESTMENT INCOME (LOSS) PER SHARE — BASIC AND DILUTED | $ | 0.00(1) | $ | 0.26 | $ | 0.23 | $ | 0.79 | ||||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE — BASIC AND DILUTED | $ | (0.03 | ) | $ | 0.20 | $ | 0.27 | $ | 0.78 | |||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING — BASIC AND DILUTED | 6,214,965 | 6,214,673 | 6,214,952 | 6,214,672 | ||||||||||||
(1) Represents less than
FAQ
What was LIEN's total investment income in Q3 2024?
How many portfolio companies did LIEN have after the October 1, 2024 acquisition?
What was LIEN's NAV per share as of September 30, 2024?
How much did LIEN's net assets increase after the Loan Portfolio Acquisition?
