Group 1 - Alan Brochstein is a pioneer in the cannabis investment sector, having focused exclusively on this industry since 2007 [1] - He founded AB Analytical Services to provide independent consulting to registered investment advisors [1] - Brochstein is the managing partner of New Cannabis Ventures, which has been a key provider of financial information in the cannabis industry since 2015 [1] Group 2 - Alan has led the investing group 420 Investor since 2013, which focuses on publicly-traded cannabis stocks [2] - The group covers 20 stocks, providing investment news, earnings report previews, and post-report analyses [2] - Additional features of the group include a model portfolio, 10 weekly videos with chart analysis, 3 weekly summary pieces, a monthly newsletter, and a chat for questions [2]

Financial Data and Key Metrics Changes - Gross investment income for Q1 2025 was $11.9 million, a decrease from $12.7 million in Q4 2024 [11] - Net investment income was $7.6 million or $0.34 per share, compared to $8.0 million or $0.35 per share in the previous quarter [12] - Net expenses were $4.3 million, slightly down from $4.4 million in the last quarter [12] - Net assets at quarter end were $301 million, with NAV per share at $13.19 [12] Business Line Data and Key Metrics Changes - The company has 31 portfolio companies, with 21% of the portfolio invested outside of cannabis [12] - The average debt position size is 3% of the debt portfolio, with 76% of the portfolio being floating rate [13] - The gross weighted average yield on company debt investments is approximately 16.6% [13] Market Data and Key Metrics Changes - The company has originated $52.8 million in gross fundings since October 1, 2024, with $32.3 million committed and $20.8 million funded in Q1 2025 [7] - The pipeline includes approximately $590 million in potential debt transactions across 35 unique companies, with $462 million in cannabis opportunities and $128 million in non-cannabis investments [16] Company Strategy and Development Direction - The company focuses on lending to cannabis companies and other underserved markets, aiming to deploy capital with differentiated risk-reward profiles [5] - The strategy includes maintaining a disciplined underwriting approach and being selective with borrowers to build durable investment portfolios [19] - The company aims to grow its dividend component as it scales its platform, having declared a total of $1.27 in dividends over the last four quarters [8] Management's Comments on Operating Environment and Future Outlook - Management believes the outlook for common sense reforms in the cannabis industry is positive, but the timing remains unpredictable [10] - The company is positioned well for 2025, focusing on proven operators and strong markets to support growth initiatives [10] - Management emphasizes a long-term view of partnership building with operators, regardless of broader market conditions [23] Other Important Information - The company has no non-accruals compared to an industry average of 3.9% [7] - A new $100 million credit facility was closed during the quarter, providing ample liquidity for future investments [14] Q&A Session Summary Question: General macro outlook and deployment readiness - The company maintains a focus on individual state markets rather than the broader U.S. cannabis industry, allowing for disciplined deployment of capital [23][25] Question: Pipeline activity comparison to previous quarters - There is no significant difference in the ratio of cannabis to non-cannabis investments, with fluctuations being ordinary [26] Question: Flexibility to increase the credit facility - The company sees room to grow its senior secured credit facility and add modest unsecured notes in a disciplined manner [27] Question: Debt leverage threshold - The company expects to remain well below industry averages for debt leverage in the foreseeable future [28] Question: Dividend growth expectations - The company does not provide specific dividend guidance but will distribute nearly all of its income by the end of the year [30]

Group 1 - Alan Brochstein is a pioneer in the cannabis investment sector, starting his career in the securities industry in 1986 and founding AB Analytical Services in 2007 to provide consulting for investment advisors [1] - He has been managing the investing group 420 Investor since 2013, focusing on publicly-traded cannabis stocks and moving the group to Seeking Alpha in 2023 [2] - The 420 Investor group covers 23 stocks, providing investment news, earnings report previews, and post-report analyses, along with model portfolios, weekly videos, summaries, and a monthly newsletter [2] Group 2 - The Big Picture is a sub-service of 420 Investor that helps investors stay informed about the cannabis sector [2]

Core Viewpoint - LEEF Brands Inc. reported financial results for Q1 2025 and full-year 2024, highlighting a mix of growth in revenue and challenges in profitability, while emphasizing future growth potential through operational improvements and market expansion [1][4]. Financial Highlights First Quarter 2025 vs. First Quarter 2024 - Revenue increased to $9.4 million, a 19% rise from $7.9 million, driven by stronger market demand and improved sales execution [5]. - Adjusted EBITDA was -$0.8 million, down from $1.2 million, attributed to costs related to new cultivation efforts [5]. - Net income reached $2.0 million, compared to a loss of $1.8 million in the prior-year period [5]. Full Year 2024 vs. Full Year 2023 - Revenue decreased to $28.5 million, a 7% decline from $30.6 million, as the company adjusted its product and customer mix for long-term profitability [5]. - Adjusted EBITDA was -$2.4 million, compared to $1.2 million, due to investments in infrastructure and operational scalability [5]. - Net loss improved to $24.6 million, a 29% reduction from $34.7 million, aided by cost containment and operational restructuring [5]. Operational Highlights - The company appointed Jesse Redmond as Head of Investor Relations and Business Development, bringing expertise from hedge funds and cannabis analysis [6]. - Production capacity was expanded, with increases in extraction capabilities: ethanol extraction up 66%, solventless by 50%, and hydrocarbon by 38% [6]. - LEEF entered the New York market with a letter of intent to acquire a Tier 1 processing license, targeting a projected $1.5 billion market in 2025 [6]. - The company began planting at Salisbury Canyon Ranch, a significant cannabis farm, which is expected to enhance margins and product quality [6]. - Salisbury Canyon Ranch was valued at $40.8 million, significantly higher than the company's current market cap, indicating strong ROI potential [6]. Outlook - LEEF Brands anticipates improvements in revenue and gross margins throughout 2025, particularly in the latter half, driven by the first harvest at Salisbury Canyon Ranch and expansion into New York [8]. - The CEO noted a 20% year-over-year growth in unit sales during Q1, reflecting strong demand and positioning for a transformational year ahead [9].

Core Insights - Alan Brochstein is a pioneer in the cannabis investment sector, having focused exclusively on this industry since 2007 [1] - He founded AB Analytical Services to provide independent consulting for registered investment advisors and has been managing partner of New Cannabis Ventures since 2015, which offers financial information relevant to the cannabis industry [1] Group 1 - Alan has been running the investing group 420 Investor since 2013, which focuses on publicly-traded cannabis stocks and moved to Seeking Alpha in 2023 [2] - The 420 Investor group closely monitors 23 stocks, providing investment news, earnings report previews, and post-report analyses [2] - Additional features of the group include two model portfolios, ten weekly videos with chart analysis, three weekly summary pieces, a monthly newsletter, and a chat service for questions [2] Group 2 - Alan also offers a sub-service called The Big Picture, designed to help investors stay informed about the cannabis sector [2]