Chicago Atlantic Announces Closing of Initial Public Offering

Rhea-AI Summary

Chicago Atlantic Real Estate Finance, Inc. has successfully closed its initial public offering of 6,250,000 shares at a price of $16.00 per share, raising approximately $100 million in gross proceeds. The company's common stock began trading on NASDAQ under the symbol REFI on December 8, 2021. The underwriters also received a 30-day option to purchase up to 937,500 additional shares. Chicago Atlantic focuses on financing state-licensed cannabis operators and aims to qualify as a REIT.

Positive

• Raised approximately $100 million through IPO.
• Focus on financing first mortgage loans in the cannabis industry, a growing sector.
• The underwriters' option to purchase additional shares may signal strong demand.

Negative

• Dilution risk from additional share issuance.
• Market uncertainties associated with cannabis-related investments.

CHICAGO, Dec. 10, 2021 (GLOBE NEWSWIRE) -- Chicago Atlantic Real Estate Finance, Inc. (“Chicago Atlantic”), a commercial real estate finance company, announced today that it has closed its initial public offering of 6,250,000 shares of its common stock at a public offering price of $16.00 per share.   At the closing, Chicago Atlantic received total gross proceeds of approximately $100 million, before deducting underwriting discounts and commissions and other offering expenses. Chicago Atlantic’s common stock is listed on The NASDAQ Global Market under the symbol “REFI” and began trading on December 8, 2021. Chicago Atlantic has also granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock at the initial public offering price.

JMP Securities LLC, Compass Point Research & Trading, LLC and Oppenheimer & Co. Inc. acted as joint book-running managers for this offering. Lake Street Capital Markets LLC and East West Markets, LLC acted as co-managers for this offering.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission (the “SEC”) and became effective on December 7, 2021. Offers of these securities were made only by means of the prospectus. The SEC has not approved or disapproved these securities or passed upon the adequacy of the prospectus. Any representation to the contrary is a criminal offense. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering of these securities was made only by means of a prospectus forming a part of the registration statement, copies of which may be obtained from: JMP Securities LLC, Attention: Prospectus Department, 600 Montgomery Street, Suite 1100, San Francisco, CA 94111, or by email at syndicate@jmpsecurities.com; Compass Point Research & Trading, LLC, Attention: Equity Syndicate, 1055 Thomas Jefferson Street, NW, Suite 303, Washington, DC 20007, or by email at syndicate@compasspointllc.com; and, Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, or by email at equityprospectus@opco.com.

About Chicago Atlantic Real Estate Finance, Inc.

Chicago Atlantic Real Estate Finance, Inc. (“Chicago Atlantic”) is a commercial real estate finance company that invests primarily in first mortgage loans to state-licensed operators in the cannabis industry, secured by real estate, equipment, receivables, licenses or other assets of the borrowers. Chicago Atlantic intends to elect and qualify to be taxed as a REIT under Section 856 of the Internal Revenue Code of 1986. Chicago Atlantic is managed by Chicago Atlantic REIT Manager, LLC.

Contact:

Andreas Bodmeier
312-809-7002
ir@chicagoatlantic.com

FAQ

What is the recent IPO offering size for Chicago Atlantic (REFI)?

Chicago Atlantic closed its IPO at 6,250,000 shares priced at $16.00 per share, totaling approximately $100 million in gross proceeds.

When did Chicago Atlantic's stock begin trading on NASDAQ?

Chicago Atlantic's stock began trading on NASDAQ on December 8, 2021, under the ticker symbol REFI.

What is the purpose of the IPO for Chicago Atlantic?

The IPO proceeds will primarily be used to finance first mortgage loans to state-licensed operators in the cannabis industry.

What additional option was granted to underwriters in Chicago Atlantic's IPO?

Underwriters were granted a 30-day option to purchase up to 937,500 additional shares at the IPO price.

Is Chicago Atlantic planning to operate as a REIT?

Yes, Chicago Atlantic intends to elect and qualify to be taxed as a REIT under Section 856 of the Internal Revenue Code.