Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Group 1: Investment Strategy - The company advocates for a diversified approach to investing, focusing on high-quality dividend stocks and assets that provide long-term growth potential [1]. - A hybrid system is proposed, blending growth and income strategies to optimize investment returns [1]. Group 2: Performance Comparison - The total return achieved through this hybrid strategy is reported to be on par with the S&P 500 index, indicating its effectiveness [1].

Core Viewpoint - Chicago Atlantic BDC, Inc. is actively participating in the Noble Capital Markets Inc.'s 21st Annual Emerging Growth Equity Conference, indicating its commitment to engaging with investors and showcasing its business strategy focused on the cannabis industry [1][2]. Company Overview - Chicago Atlantic BDC, Inc. is a specialty finance company regulated as a business development company under the Investment Company Act of 1940, aiming to maximize risk-adjusted returns for its stockholders [5]. - The company's investment strategy primarily involves direct loans to privately held middle-market companies, with a significant focus on the cannabis sector [5]. Conference Participation - The company will host one-on-one meetings with investors and present on December 3, 2025, at 3:00 PM ET [2]. - A high-definition video webcast of the presentation will be available the following day on the company's website and other platforms, ensuring broad accessibility for investors [3]. Investor Relations - Investors interested in scheduling meetings with the company's management can contact NobleCon representatives or the company's investor relations team [4].

Financial Data and Key Metrics Changes - Net investment income per share was $0.42 for Q3 2025, up from $0.34 in Q2 2025, indicating a 23.5% increase [10] - Gross investment income totaled $15.1 million for Q3 2025, compared to $13.1 million in Q2 2025 [10] - Net assets reached $302.9 million at quarter end, with net asset value per share increasing to $13.27 from $13.23 in Q2 2025 [11] Business Line Data and Key Metrics Changes - The company funded $66.7 million to 13 new investments in Q3 2025, setting a new record for originations [4][12] - 24% of the portfolio is invested in non-cannabis companies across multiple sectors, with 69% of the portfolio having floating interest rates [9] - The gross weighted average yield on the credit investment portfolio was approximately 15.8% [10] Market Data and Key Metrics Changes - The company has approximately $610 million in potential debt transactions in its pipeline, with $415 million in cannabis opportunities and $195 million in non-cannabis investments [13] - As of November 12, 2025, the company had approximately $97.8 million in liquidity, providing ample capacity for further investments [10] Company Strategy and Development Direction - The company focuses on lending to cannabis companies and the lower-middle market, which is often underserved by capital providers, creating unique credit opportunities [4] - The investment strategy emphasizes no overlap with other public BDCs, allowing for a differentiated portfolio [6][14] - The company aims to maintain a high bar for underwriting and structuring investments to ensure above-market risk-adjusted returns [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the cannabis industry, noting that it is not a monolith and varies significantly across jurisdictions [19] - The closing of the hemp-related loophole is expected to support state-regulated markets and positively impact borrowers [23][24] - The company remains disciplined in its approach to lending, focusing on building strong relationships and maintaining a broad pipeline [20] Other Important Information - The company announced a $0.34 dividend, marking the fifth consecutive quarter at that rate, which is well covered by net investment income [8] - The portfolio is under-levered, with only $11 million of debt outstanding, compared to the BDC average of 1.2 times debt to equity [8] Q&A Session Summary Question: Were the loan repayments in line with expectations, and how does the company view the cannabis industry outlook? - Management noted that while there were more repayments than expected, it did not impact deployment pace due to a strong pipeline built over time [18] - The company maintains a constructive view of the cannabis industry, recognizing its complexity across different jurisdictions [19] Question: How does the company view the potential impact of the hemp derivatives industry on cannabis players? - Management believes that closing the hemp-related loophole will support state-regulated markets and benefit borrowers, despite some negative aspects [23][24] Question: What is the company's perspective on uncertain tax liabilities and their impact on borrowers? - The company views uncertain tax liabilities as a liability that must be paid and aims to limit such liabilities in loan documents to reduce risk [27] Question: How does the company manage the risks associated with lending to smaller private companies? - Management highlighted that lending to smaller companies allows for greater negotiation power and downside protection, balancing risk with strong portfolio monitoring [29]

Core Insights - Chicago Atlantic BDC, Inc. reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing a significant improvement from break-even earnings per share a year ago, resulting in an earnings surprise of +20.00% [1] - The company achieved revenues of $15.07 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.97%, compared to revenues of $3.18 million in the same quarter last year [2] - The stock has underperformed the market, losing about 17.6% since the beginning of the year, while the S&P 500 has gained 16.5% [3] Earnings Outlook - The earnings outlook for Chicago Atlantic BDC is mixed, with current consensus EPS estimates at $0.35 for the coming quarter and $1.41 for the current fiscal year, with revenues expected to be $13.99 million and $52.46 million respectively [7] - The company's Zacks Rank is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Chicago Atlantic BDC belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Company Overview - Chicago Atlantic BDC has closed over $3.2 billion in loans since its platform inception[10] - The company's total portfolio investment value is $311 million[10] - The gross weighted-average yield of the company's debt investments is 15.8%[10] - 100% of the company's current debt investments are senior secured[10] Financial Performance - Gross investment income for the quarter ended September 30, 2025, was $15.1 million[24] - Net investment income for the same quarter was $9.5 million, or $0.42 per share[24] - Net asset value at the end of the period was $302.9 million, or $13.27 per share[24] Portfolio Composition and Strategy - 76% of the investment portfolio is allocated to cannabis-related businesses, while 24% is in non-cannabis sectors[29] - 71% of the debt portfolio is protected from further interest rate declines due to fixed rates or rate floors[15, 42] - Internally agented deals account for 83.8% of the portfolio companies[27]

Investment Income - Total investment income for Q3 2025 was approximately $15.1 million, with interest income accounting for $13.8 million[6] - Net investment income for the quarter was $9.5 million, or $0.42 per weighted average share outstanding[6] Investment Portfolio - The total investment portfolio had a fair value of approximately $311.4 million across 37 portfolio companies as of September 30, 2025[7] - The Company funded eleven portfolio companies with an aggregate par value of $66.3 million during the quarter, including seven new borrowers[7] - As of September 30, 2025, there were no loans on non-accrual status, indicating strong credit quality[7] Net Asset Value - The Company's net asset value (NAV) per share increased to $13.27 from $13.23 as of June 30, 2025, driven by growth in net assets[10] Dividends - The Company declared a cash dividend of $0.34 per share for the quarter ending December 31, 2025, payable on January 15, 2026[11] Liquidity - As of September 30, 2025, the Company had $99.5 million of liquidity, including $10.5 million in cash and cash equivalents[9] Loan Activity - The Company had principal amortization and repayments of $62.7 million during the quarter[7] - The Company achieved gross originations of $66.7 million during the quarter, setting a new record[4]

Core Insights - Chicago Atlantic BDC, Inc. reported strong financial results for Q3 2025, highlighting its differentiated strategy and robust portfolio management amidst industry challenges [1][3]. Financial Performance - Total investment income for Q3 2025 was approximately $15.1 million, with interest income contributing $13.8 million [5][7]. - The company incurred net expenses of approximately $5.6 million, resulting in net investment income of approximately $9.5 million, or $0.42 per weighted average share [5][21]. - The net increase in net assets from operations was approximately $8.8 million, or $0.39 per weighted average share [5][21]. Portfolio and Investment Activity - The investment portfolio had an aggregate fair value of approximately $311.4 million across 37 portfolio companies as of September 30, 2025 [8][19]. - During Q3 2025, the company funded eleven portfolio companies with an aggregate par value of $66.3 million, including seven new borrowers [8][21]. - There were no loans on non-accrual status as of September 30, 2025, indicating strong credit quality [8][3]. Liquidity and Capital Resources - As of September 30, 2025, the company had $99.5 million in liquidity, including $10.5 million in cash and cash equivalents [6][19]. - The company had $11 million outstanding on its $100 million senior credit facility, with $7.5 million outstanding as of November 12, 2025 [6][19]. Net Asset Value and Dividends - The net asset value (NAV) per share increased to $13.27 as of September 30, 2025, compared to $13.23 as of June 30, 2025 [9][19]. - The Board of Directors declared a cash dividend of $0.34 per share for the quarter ending December 31, 2025, payable on January 15, 2026 [10][21].

Core Points - Chicago Atlantic BDC, Inc. has declared a cash dividend of $0.34 per share for the quarter ending December 31, 2025 [1] - The record date for the dividend is December 31, 2025, and the payment date is January 15, 2026 [1] - The company has a dividend reinvestment plan (DRIP) that allows stockholders to reinvest dividends unless they opt to receive cash [1] Company Overview - Chicago Atlantic BDC, Inc. is a specialty finance company regulated as a business development company under the Investment Company Act of 1940 [2] - The company's investment objective is to maximize risk-adjusted returns on equity by primarily investing in direct loans to privately held middle-market companies, focusing on the cannabis sector [2] - The company is managed by Chicago Atlantic BDC Advisers, LLC, which specializes in the cannabis industry and other niche sectors [2]

Financial Performance - Total investment income for the three months ended September 30, 2025, was $15,070,603, a significant increase from $3,175,947 in the same period of 2024, representing a growth of approximately 373%[15] - Net investment income for the three months ended September 30, 2025, was $9,491,121, compared to $14,512 for the same period in 2024, indicating a substantial increase[15] - Interest income for the nine months ended September 30, 2025, was $37,012,196, compared to $8,203,601 for the same period in 2024, showing an increase of approximately 351%[15] - The company reported a net increase in net assets resulting from operations of $8,834,061 for the three months ended September 30, 2025, compared to a decrease of $165,012 in the same period of 2024[15] - For the nine months ended September 30, 2025, the net increase in net assets resulting from operations was $25,032,683, compared to $1,647,660 for the same period in 2024, indicating significant growth[22] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $327,253,579, up from $309,561,041 as of December 31, 2024, reflecting an increase of about 5.6%[12] - Total liabilities rose to $24,333,000 as of September 30, 2025, compared to $8,398,463 as of December 31, 2024, marking an increase of approximately 189%[12] - The balance of net assets as of September 30, 2025, was $302,920,579, compared to $82,539,642 as of September 30, 2024, reflecting a significant increase[20] Investment Activity - The company purchased investments totaling $124,909,502 for the nine months ended September 30, 2025, compared to $5,141,250 for the same period in 2024, indicating a substantial increase in investment activity[22] - Total cannabis investments reached $222.052 million, representing 73.4% of the portfolio[24] - The company is actively pursuing market expansion through various term loans across different sectors, including cannabis and finance[24] Expenses - The company incurred total expenses of $5,809,901 for the three months ended September 30, 2025, compared to $3,161,435 for the same period in 2024, representing an increase of about 83%[15] - The management fee expenses for the three months ended September 30, 2025, were $1,399,845, a significant increase from $253,421 in the same period of 2024[127] - The Company recorded income-based incentive fee expenses of $2,347,473 for the three months ended September 30, 2025, compared to $0 for the same period in 2024[128] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period on September 30, 2025, were $10,462,366, down from $30,111,563 at the end of September 30, 2024[22] - The company has a cash and cash equivalents balance of $10,462,366 as of September 30, 2025, down from $23,932,406 as of December 31, 2024[12] Debt and Financing - The company has a revolving line of credit of $11,000,000 as of September 30, 2025, which was not present as of December 31, 2024[12] - The Company entered into a senior secured revolving credit agreement with an initial aggregate amount of up to $100,000,000, with $89,000,000 available as of September 30, 2025[117][121] - The average interest rate on borrowings under the Credit Agreement was 7.33% for the three and nine months ended September 30, 2025[124] Regulatory and Market Risks - The company anticipates potential impacts from uncertainties related to the new U.S. Presidential administration, including tariff enactment and tax reductions, which could affect business prospects[10] - The company has identified various risk factors, including regulatory challenges in the cannabis industry, which could adversely affect its portfolio companies[107] Investment Strategy - The Company focuses on investing in the cannabis industry, aiming to maximize risk-adjusted returns on equity[41] - The Company’s investment strategy includes secured and unsecured debt, equity warrants, and direct equity investments[42] Shareholder Distributions - Total distributions paid to stockholders for the nine months ended September 30, 2025, amounted to $15,515,682, significantly higher than $4,660,638 for the same period in 2024[22] - A cash dividend of $0.34 per share was approved by the Board on November 11, 2025, payable on January 15, 2026[168] Valuation and Fair Value - The fair value of total investments is reported at $275,241,000, which is 91.4% of net assets[34] - The fair value of investments is determined using a multi-step valuation process, which includes inputs from independent third-party valuation firms[60] Tax and Compliance - The Company has transitioned to a regulated investment company (RIC) for U.S. federal income tax purposes[39] - The Company intends to maintain its tax treatment as a RIC and must distribute at least 90% of its investment company taxable income to avoid federal excise taxes[74]

Core Viewpoint - Chicago Atlantic BDC, Inc. is set to release its financial results for the third quarter of 2025 on November 13, 2025, before the market opens, followed by a conference call at 9:00 a.m. Eastern Time [1][2]. Company Overview - Chicago Atlantic BDC, Inc. is a specialty finance company regulated as a business development company under the Investment Company Act of 1940, focusing on maximizing risk-adjusted returns on equity for stockholders [4]. - The company's investment strategy primarily involves direct loans to privately held middle-market companies, with a significant emphasis on the cannabis sector [4]. Conference Call Details - The conference call will be accessible to the general public, with a dial-in number provided for participants [2][5]. - A replay of the conference call will be available on the company's website by the end of the day on November 13, 2025 [3].