Core Viewpoint - Chicago Atlantic BDC, Inc. is set to release its financial results for the first quarter of 2025 on May 14, 2025, before market opening, 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 for stockholders through direct loans to privately held middle-market companies, particularly in the cannabis sector [4]. Financial Results Release Details - The financial results will be available before the market opens on May 14, 2025, with a conference call scheduled for the same day at 9:00 a.m. ET, accessible to the public [2][6]. - A replay of the conference call will be available on the company's website by the end of the day on May 14, 2025 [3].

Financial Data and Key Metrics Changes - Gross investment income for the fourth quarter was $12.7 million, compared to $3.7 million in the same quarter last year, indicating a significant increase [4]. Business Line Data and Key Metrics Changes - The company funded seven investments in the fourth quarter with a par value of approximately $24.8 million, which included five investments to existing borrowers for about $18.9 million and two investments to new borrowers totaling approximately $5.9 million [5]. Market Data and Key Metrics Changes - The current pipeline across the Chicago Atlantic platform remains robust with approximately $644 million in potential debt transactions across 39 unique companies [5]. Company Strategy and Development Direction - The company aims to create a scaled, diversified portfolio of senior secured investments, focusing on generating attractive yields and leveraging expertise in cannabis and underserved lending markets [3]. Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of providing flexible capital solutions to borrowers, highlighting the strategic partnership aspect of the BDC model [9]. - The CEO noted the difficulty in forecasting deployment pacing due to the nature of credit facilities but expressed confidence in the ongoing focus on deploying existing resources [10][11]. Other Important Information - Subsequent to the quarter end, the company committed approximately $32.3 million in new debt investments and funded about $20.8 million of that [5]. Q&A Session Summary Question: Advantages of BDC for Borrowers - The CEO explained that borrowers prefer availability of capital and a strategic partner who understands their business rather than focusing on lender restrictions [9]. Question: Sustainability of New Debt Fundings - The CEO indicated that while it is difficult to forecast exact deployment pacing, a commitment of around $30 million in new debt funding per quarter is not unreasonable [10][13]. Question: Interest Rate Exposure - The CFO was asked about interest rate exposure, but the response was not included in the provided content [16].

Portfolio Highlights - The company has a total portfolio investment value of approximately $275 million[12] - The gross weighted-average yield of the company's debt investments is 165%[12] - 100% of the company's current debt investments are senior secured[12] - Approximately 80% of the debt investments are floating rate loans[16], and almost all of these have floors[16] Financial Performance - Gross investment income for the quarter ended December 31, 2024, was $127 million[24], compared to $36 million for the quarter ended December 31, 2023[24] - Net investment income for the year ended December 31, 2024, was $95 million[24], compared to $66 million for the year ended December 31, 2023[24] - Net assets at the end of the period were $3012 million[24] Market Opportunity - The U S cannabis industry is estimated to be a $32 billion market in top-line retail revenue in 2024[43] and is projected to grow to $58 billion by 2030[43] - Chicago Atlantic estimates it represents approximately 20% of the current U S cannabis debt market, with $23 billion in closed cannabis loans to date[48] Pipeline - The company has an active pipeline under evaluation of approximately $644 million[12] - The active pipeline is comprised of approximately 77% cannabis and 23% non-cannabis opportunities[50]

IPO and Acquisitions - The company completed its IPO on February 8, 2022, raising approximately $83.3 million from the sale of 6,071,429 shares at $14.00 per share[20]. - On October 1, 2024, the company acquired a loan portfolio valued at $219,621,125 by issuing 16,605,372 shares of common stock[23]. - The company’s common stock began trading on the Nasdaq Global Market under the symbol "LIEN" on October 2, 2024[22]. Investment Strategy and Focus - The company has an active pipeline of investments, currently reviewing approximately $644 million in potential investments[35]. - The company’s investment strategy was expanded on February 20, 2024, to include investments outside the cannabis and health and wellness sectors[22]. - The company focuses on investing in private leveraged lower middle-market and middle-market companies with up to $100 million in EBITDA[35]. - The company’s investment objective is to maximize risk-adjusted returns on equity for shareholders through secured and unsecured debt investments[32]. - Chicago Atlantic's investment strategy focuses on senior secured loans, subordinated loans, and equity investments, aiming for attractive risk-adjusted returns[72]. - The company aims to maximize risk-adjusted returns on equity for shareholders by focusing on the cannabis industry and lower middle-market investment opportunities[74]. Financial Performance and Market Trends - As of December 31, 2024, Chicago Atlantic managed $1.9 billion in Capital Under Management, which includes total committed investor capital and available leverage[48]. - Estimated U.S. state-legal cannabis retail sales reached $32 billion in 2024, projected to grow to approximately $58 billion by 2030[52]. - Public and private cannabis capital raises in 2024 included $0.5 billion in equity and $1.2 billion in debt, indicating a shift towards increased reliance on debt financing[58]. - The number of public and private cannabis mergers and acquisitions in 2024 decreased to 45 deals, down from 67 in 2023[59]. - The capital raising environment for private credit reached $209 billion in 2024, a 5% increase over 2023, highlighting strong momentum in the market[62]. - The cannabis industry is experiencing a significant increase in demand for credit-based solutions as companies prefer less dilutive forms of growth capital[61]. - Companies in the lower middle-market are expected to continue requiring access to debt capital for growth and refinancing, creating investment opportunities[67]. - The reliance on debt financing in the cannabis industry is expected to persist until significant federal reform is enacted[56]. Management and Operations - The company has restructured its Board and management team following the Loan Portfolio Acquisition and Joint Venture[28]. - The management team possesses extensive expertise in cannabis and non-cannabis industries, enhancing the company's ability to evaluate investment opportunities[76]. - The company plans to leverage its management team's networks to become a leading investor in the legal cannabis industry and lower middle-market[77]. - The company does not have any employees; day-to-day management is handled by the Adviser and its Investment Committee[125]. - The Adviser is responsible for determining fair value and is designated as the Valuation Designee, subject to Board oversight[111]. Investment Process and Due Diligence - The investment process involves direct origination networks and relationships with entrepreneurs, private equity firms, and investment banks to identify opportunities[81]. - The company seeks to invest primarily through loans, which typically have maturities of two to six years, with interest paid on a floating rate basis[84][85]. - The investment criteria focus on businesses with durable competitive advantages, consistent operational performance, and free cash flow generation[87]. - The company employs a multi-channel sourcing strategy to identify investment opportunities, emphasizing strong management teams[89]. - The due diligence process includes a structured call with management, financial analysis, and on-site meetings to assess the portfolio company's performance and plans[92][94]. - The company monitors portfolio companies' financial trends and employs a five-level numeric rating scale to evaluate credit profiles and expected returns[104]. Valuation and Financial Reporting - The company conducts quarterly NAV determinations, with NAV per share calculated as total assets minus liabilities divided by total shares outstanding[118]. - Investments rated 1 indicate the borrower is performing above expectations, while those rated 5 indicate substantial underperformance and non-compliance with debt covenants[106]. - The fair value of investments is determined based on observable market prices or valuation techniques, with a multi-step valuation process conducted quarterly[113][114]. - Changes in market conditions can lead to fluctuations in the fair value of investments, which may differ from realized gains or losses[116][117]. - The NAV per share is adjusted based on management's assessment of material changes since the last reported NAV[123]. - The company records investments at fair value, with realized gains or losses measured against the amortized cost basis[110]. Fees and Expenses - The base management fee is calculated at an annual rate of 1.75% of the company's gross assets, excluding cash and cash equivalents[135]. - The incentive fee on income is based on the company's "Pre-Incentive Fee Net Investment Income," with a hurdle rate of 1.75% per quarter (7% annualized)[136]. - The incentive fee on capital gains equals 20% of cumulative realized capital gains, less cumulative realized capital losses and unrealized capital depreciation[139]. - The company incurred a $6 million Incentive Fee on Capital Gains in Year 2 from the sale of Investment A, which generated $30 million in realized capital gains[153]. - In Year 3, the company recorded an Incentive Fee on Capital Gains of $1.4 million based on cumulative realized capital gains[153]. - The company has an annualized hurdle rate of 1.75% and a management fee of 0.4375%[149][150]. - The Expense Limitation Agreement caps operating expenses at an annualized rate of 2.15% of the company's net assets through September 30, 2025[168]. Compliance and Governance - The company has adopted a code of ethics to establish procedures for personal investments and restrict certain personal securities transactions[208]. - Compliance policies and procedures are in place to prevent violations of federal securities laws, with annual reviews for adequacy and effectiveness[209]. - Proxy voting responsibility has been delegated to the Adviser, which will vote in the best interest of stockholders[210]. - The company is subject to periodic examination by the SEC for compliance with the 1940 Act[216]. - None of the investment policies are fundamental and may be changed without stockholder approval[217].

Financial Reporting - Chicago Atlantic BDC, Inc. will report its financial results for Q4 and the year ended December 31, 2024, on March 31, 2025[4]. - The earnings conference call will take place at 8:30 a.m. Eastern Time on March 31, 2025[4]. - The company has not disclosed specific financial metrics or performance indicators in this report[5]. Dividends - The company announced a cash dividend for the quarter ending March 31, 2025, details of which will be provided in a press release[13]. - The press release regarding the cash dividend is included as Exhibit 99.2 to the Current Report[14]. Leadership Changes - Mr. Andreas Bodmeier resigned as CEO on March 13, 2025, with no disagreements reported regarding company operations[10]. - Mr. Peter Sack has been appointed as the new CEO, bringing experience as a credit investor and portfolio manager[11][12]. - Ms. Supurna VedBrat and Mr. Patrick McCauley were appointed as Class 1 and Class 3 Directors, respectively, following the resignation of previous directors[6][7]. - The company has a history of strategic leadership changes, indicating a focus on governance and operational effectiveness[10][11]. Company Classification - The company is classified as an emerging growth company under the Securities Act[2].

Company Overview - Chicago Atlantic BDC, Inc. (LIEN) shares increased by 5.4% to close at $12.01, following a notable trading volume that exceeded typical levels [1] - The stock had previously experienced a 5.7% decline over the past four weeks [1] Dividend Announcement - The company declared a quarterly dividend of $0.34 per share, yielding 11.3%, which has contributed to a bullish sentiment among investors [2] - The anticipated rise in demand for specialized financing in the cannabis industry, due to proposed rescheduling that may offer tax and legal relief, supports the sustainability of the dividend payout [2] Earnings Expectations - Chicago Atlantic BDC is projected to report quarterly earnings of $0.29 per share, reflecting a year-over-year increase of 3.6% [3] - Expected revenues for the upcoming quarter are $11 million, representing a significant increase of 200.6% compared to the same quarter last year [3] Stock Performance Insights - The consensus EPS estimate for the quarter has remained stable over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [4] Industry Context - Chicago Atlantic BDC operates within the Zacks Financial - SBIC & Commercial Industry, alongside other companies such as Gladstone Capital (GLAD), which recently closed 1.9% higher [4] - Gladstone Capital's consensus EPS estimate has increased by 1.5% over the past month to $0.51, marking a year-over-year change of 104% [5]

Group 1 - The Company, Chicago Atlantic BDC, Inc., has declared a cash dividend of $0.34 per share for the quarter ending March 31, 2025 [1] - Key dates for the dividend include a record date of March 28, 2025, and a payment date of April 11, 2025 [1] - The Company has a dividend reinvestment plan (DRIP) that allows stockholders to reinvest dividends into additional shares unless they opt to receive cash [1] Group 2 - 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]

Core Viewpoint - Chicago Atlantic BDC, Inc. is set to release its financial results for the fourth quarter and full year ended December 31, 2024, on March 31, 2025, before market opening [1][2]. Group 1: Financial Results Announcement - The financial results will be announced before the market opens on March 31, 2025 [2]. - A conference call and live audio webcast will be held on the same day at 8:30 a.m. Eastern Time, accessible to the general public [2][6]. - The conference call can be accessed via phone at (833) 630-1956 for domestic callers and (412) 317-1837 for international callers [2]. Group 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 [4]. - The company's investment objective focuses on maximizing risk-adjusted returns on equity by primarily investing in direct loans to privately held middle-market companies, particularly in the cannabis sector [4]. - The company is managed by Chicago Atlantic BDC Advisers, LLC, which specializes in the cannabis industry and other niche sectors [4].

Core Viewpoint - Chicago Atlantic BDC, Inc. has secured a new $100 million senior secured revolving credit facility, enhancing its liquidity and flexibility for future portfolio growth [1][2] Group 1: Credit Facility Details - The new credit facility matures in March 2028 and has an interest rate of SOFR plus 3.00% [1] - The facility is led by an FDIC-insured financial institution, indicating a strong banking partnership [2] Group 2: Company Strategy and Performance - The company currently has no outstanding debt, allowing it to leverage the new credit facility for disciplined portfolio growth [2] - A recent dividend of $0.34 per share was announced, representing a 36% increase from the previous quarter's dividend of $0.25 per share [2] Group 3: Investment Focus and Portfolio Metrics - Chicago Atlantic BDC is primarily focused on the U.S. cannabis industry and seeks to invest in niche opportunities that are typically underserved by traditional capital sources [3][8] - As of October 1, 2024, the company reported a gross weighted-average yield of 17.2% on debt investments, with 79% of the portfolio consisting of floating rate loans [5]

Financial Reporting - Chicago Atlantic BDC, Inc. will report its financial results for Q3 2024 on November 8, 2024, before market open[2] - An earnings conference call and webcast will be held at 8:00 a.m. Eastern Time on November 8, 2024, to discuss the financial results[2]