NEW YORK, Nov. 21, 2025 (GLOBE NEWSWIRE) -- Chicago Atlantic BDC, Inc. (the “Company”) (NASDAQ: LIEN), a specialty finance company that has elected to be regulated as a business development company, today announced that the Company will participate in Noble Capital Markets Inc.’s 21st Annual Emerging Growth Equity Conference taking place December 2-3, 2025 in Boca Raton, FL. Dino Colonna, President of the Company, will host one-on-one meetings with investors, followed by a presentation at 3:00 PM ET on Wedn ...

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].

Group 1 - Chicago Atlantic BDC is structured as a business development company that generates earnings by providing capital to middle-market businesses for development and expansion [1] - The company focuses on uncovering high-quality dividend stocks and other assets that offer potential for long-term growth, aiming to enhance investment income while achieving total returns comparable to traditional index funds [1] Group 2 - The analyst emphasizes a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to boost income [1]