Core Viewpoint - Chicago Atlantic Real Estate Finance, Inc. focuses on debt investments in the U.S. cannabis industry, leveraging its expertise and limited competition to achieve differentiated risk and high returns [1][5][11]. Company Overview - The company operates at the intersection of real estate, credit, and the cannabis sector, applying best-in-class sector expertise and relationship-based sourcing capabilities [1]. - Chicago Atlantic has a team of over 100 professionals managing $2.3 billion in capital, emphasizing the importance of expertise in generating alpha for investors [6]. Financial Performance - As of December 31, the loan portfolio principal totaled approximately $411 million across 26 companies, with a weighted average yield to maturity of 16.3% [12]. - Net interest income for the fourth quarter was $14.2 million, a 4% increase from the previous quarter, primarily due to the collection of past-due interest [17]. - The company maintains a strong real estate coverage of 1.2 times and a loan-to-enterprise value ratio of 44.2% [19]. Market Position and Strategy - Chicago Atlantic's portfolio has limited overlap with other private credit markets, insulating it from broader market pressures [7]. - The company has a strong pipeline of $616 million, indicating robust demand for debt capital in the cannabis sector [8][41]. - The strategy includes a disciplined focus on credit and collateral, with a commitment to maintaining underwriting standards despite market changes [11][43]. Regulatory Environment - Recent positive momentum in cannabis policy, including President Trump's executive order to reclassify cannabis, is expected to improve industry economics without increasing lending competition [10][11]. - The company does not anticipate significant changes in competition or pricing due to the current regulatory environment [26][43]. Loan Portfolio Management - The portfolio consists of 37.6% fixed-rate loans and 62.4% floating-rate loans, with only 9% exposed to further rate declines [13][14]. - The company has structured its loans with high interest rate floors, providing protection against interest rate volatility [14][15]. - Recent loan activity includes significant advances to borrowers, with a focus on supporting growth and restructuring efforts [21][35]. Dividend and Shareholder Returns - Distributable earnings per share for the fourth quarter were approximately $0.44, with a total of $8.47 per share distributed since inception, representing an annualized yield on cost of approximately 12.4% [20]. - The company expects to maintain a dividend payout ratio of 90% to 100% for the 2026 tax year [22].

Financial Data and Key Metrics Changes - As of December 31, 2025, the loan portfolio principal totaled approximately $411 million across 26 portfolio companies, with a weighted average yield to maturity of 16.3%, compared to 16.5% in the third quarter [11] - Net interest income for the fourth quarter was $14.2 million, a 4% increase from $13.7 million in the third quarter [17] - Distributable earnings per weighted average share were approximately $0.44 for the fourth quarter and $1.92 for the year [19] Business Line Data and Key Metrics Changes - Gross originations during the fourth quarter were approximately $19 million, with $5 million advanced to a new borrower and $14 million to existing borrowers [11] - The portfolio consisted of 37.6% fixed-rate loans and 62.4% floating-rate loans, with only 9% exposed to further rate declines [13][14] Market Data and Key Metrics Changes - The pipeline of potential loans currently stands at $616 million, indicating strong demand for debt capital in the cannabis sector [8] - The company has not observed new lenders entering the market despite the recent rescheduling announcement, which has increased demand for debt capital [26][30] Company Strategy and Development Direction - The company focuses on the cannabis sector, leveraging its expertise to create a differentiated risk-return profile [4][8] - Chicago Atlantic aims to maintain a disciplined approach to underwriting and risk management, ensuring that it does not lower its credit standards despite increased market opportunities [45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current environment and the potential for portfolio growth, although liquidity constraints may impact capital deployment [24] - The company is well-positioned to benefit from positive momentum in cannabis policy, including the recent executive order to reclassify cannabis [9] Other Important Information - The company has maintained a CECL reserve of approximately $5.1 million, representing 1.23% of outstanding principal [18] - The book value per common share was $14.60 as of December 31, 2025, with approximately 21.5 million common shares outstanding [20] Q&A Session Summary Question: Outlook on pipeline and net portfolio growth - Management remains confident in achieving net portfolio growth for the year, although liquidity is a concern [24] Question: Current yields and impact of rescheduling - Rescheduling has increased demand for debt capital but has not changed pricing or underwriting standards [26] Question: Competition in the market - No new lenders have entered the market following rescheduling, and significant reforms are needed to attract more participants [30] Question: Loan number nine and borrower situation - Loan number nine has seen improvements in cash flow and revenue, leading to a current status on interest payments, though it remains on non-accrual [38][40] Question: Early repayments on loans - Loan number one was refinanced, while loan number 27 was paid off without pursuing refinancing due to various considerations [42] Question: Pipeline increase and pricing - The increase in the pipeline does not correlate with changes in pricing or risk evaluation, as the company maintains strict underwriting standards [44][45]

Financial Data and Key Metrics Changes - As of December 31, 2025, the loan portfolio principal totaled approximately $411 million across 26 portfolio companies, with a weighted average yield to maturity of 16.3%, down from 16.5% in the third quarter [11] - Net interest income for the fourth quarter was $14.2 million, a 4% increase from $13.7 million in the third quarter, primarily due to the collection of past due interest [17] - Distributable earnings per weighted average share were approximately $0.44 for the fourth quarter and $1.92 for the year, with a book value per common share of $14.60 as of December 31, 2025 [19][20] Business Line Data and Key Metrics Changes - Gross originations during the fourth quarter were approximately $19 million, with $5 million advanced to a new borrower and $14 million to existing borrowers [11] - The portfolio consisted of 37.6% fixed-rate loans and 62.4% floating-rate loans, with only 9% exposed to further rate declines [13][14] Market Data and Key Metrics Changes - The current pipeline stands at $616 million, indicating strong demand for growth capital within the cannabis sector [8] - Recent positive momentum in cannabis policy includes President Trump's executive order to reclassify cannabis from Schedule I to Schedule III, which could improve industry economics [9] Company Strategy and Development Direction - The company focuses on debt investments in the cannabis industry, leveraging limited competition to structure senior secured positions with differentiated downside risk [4][6] - The strategy emphasizes a disciplined focus on credit and collateral, with a strong emphasis on risk management and collaboration with borrowers [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on the pipeline and achieve net portfolio growth despite liquidity constraints [24] - The company maintains a conservative approach to underwriting, not lowering standards despite increased demand for debt capital due to rescheduling [26][45] Other Important Information - The company has a CECL reserve of approximately $5.1 million, representing 1.23% of outstanding principal, maintaining strong real estate coverage of 1.2 times [18] - Total leverage was 32% of book equity as of December 31, 2025, with $49.1 million outstanding on the senior secured revolving credit facility [15][16] Q&A Session Summary Question: Outlook on pipeline and net portfolio growth - Management remains confident in achieving net portfolio growth, with $50 million of liquidity available for deployment [24] Question: Current yields and impact of rescheduling - Rescheduling has increased demand for debt capital but has not changed pricing or underwriting processes [26] Question: Competition in the market - No new lenders have entered the market post-rescheduling, and significant reforms are needed to increase competition [30][31] Question: Loan number nine's additional funding - The additional funding was part of a recapitalization strategy to improve the borrower's cash flow and operations [37][38] Question: Early repayments on loans - Loan number one was refinanced, while loan number 27 was paid off without pursuing refinancing due to various considerations [42] Question: Pipeline increase and pricing consistency - The increase in the pipeline reflects a broader range of opportunities, but underwriting standards and pricing remain unchanged [44][45]

Financial Data and Key Metrics Changes - As of December 31, 2025, the loan portfolio principal totaled approximately $411 million across 26 portfolio companies, with a weighted average yield to maturity of 16.3%, down from 16.5% in the third quarter [12] - Net interest income for the fourth quarter was $14.2 million, a 4% increase from $13.7 million in the third quarter, primarily due to the collection of past due interest [18] - Total leverage was 32% of book equity as of December 31, compared to 33% as of September 30 [16] Business Line Data and Key Metrics Changes - Gross originations during the fourth quarter were approximately $19 million, with $5 million advanced to a new borrower and $14 million to existing borrowers [12] - The portfolio consisted of 37.6% fixed-rate loans and 62.4% floating-rate loans, with only 9% exposed to further rate declines [13][14] Market Data and Key Metrics Changes - The current pipeline stands at $616 million, indicating strong demand for debt capital in the cannabis sector [9] - The company has not experienced an over-allocation of capital, which is leading to compressed yields in other sectors of private credit [9] Company Strategy and Development Direction - The company focuses on the cannabis sector, leveraging its expertise to make debt investments in an industry with limited sources of debt capital [5] - The strategy is built on a disciplined focus on credit and collateral, with a strong emphasis on risk management [9] - The company aims to maintain a dividend payout ratio based on distributable earnings per share of 90%-100% for the 2026 tax year [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current environment, noting a strong pipeline and the potential for improved industry economics due to recent policy changes [10] - The company underwrites every investment assuming no regulatory-driven credit improvements, maintaining a conservative approach to risk [11] Other Important Information - The company has distributed $8.47 per common share in dividends since inception, representing an annualized yield on cost of approximately 12.4% [20] - The company received a total of $40.4 million in loan repayments, including early prepayments [21] Q&A Session Summary Question: Can you provide insight into the pipeline and potential net portfolio growth? - Management indicated confidence in achieving net portfolio growth, although liquidity is currently constrained relative to the pipeline [25] Question: How has rescheduling impacted current yields and underwriting? - Rescheduling has increased demand for debt capital but has not changed pricing or underwriting standards [27] Question: Are the new non-accrual loans in Arizona related to the same sponsor? - Yes, the loans are related to the same sponsor, who is navigating a challenging pricing environment [33] Question: Can you explain the logic behind lending more to a troubled borrower? - The company supported the borrower through a recapitalization and acquisition of additional dispensaries, improving cash flow and allowing the borrower to become current on interest [37] Question: What were the reasons for early repayments on certain loans? - Loan number 1 was refinanced with a new credit facility, while loan number 27 was paid off without pursuing refinancing due to various considerations [43]

Company Overview - Canopy Growth has seen its stock value decline by over 40% in the past year, with its market cap dropping from approximately $1.5 billion to just under $400 million, and it has not reported a profitable quarter since Q2 2021 [1] - Green Thumb Industries is positioned as a profitable alternative in the cannabis sector, on track for its sixth consecutive year of positive earnings per share [2] Financial Performance - Canopy Growth reported a revenue of $90.4 billion in its fiscal 2026 third quarter, marking a 5% year-over-year increase, but still incurred a net loss of $0.18 per share, which was a 49% reduction in loss compared to previous periods [4] - The company has reduced its net long-term debt by 25% to $225 million, although this was achieved by issuing new stock, leading to a 142% increase in the number of shares outstanding over the past year [5] Market Position and Strategy - Canopy Growth has operations in Canada, Germany, and Australia, and its acquisition of Acreage Holdings aims to establish a presence in the growing U.S. cannabis market [5] - Green Thumb Industries operates 108 dispensaries and 20 manufacturing facilities across 14 states, and is expected to benefit significantly if cannabis is reclassified as a Schedule III substance, which would allow for standard business deductions [6][7] Tax Implications - Currently, cannabis companies face limitations on business deductions due to marijuana being classified as a Schedule I drug, resulting in U.S. cannabis companies paying an additional $2.3 billion in taxes in 2024 [7] - Rescheduling cannabis could enable companies like Green Thumb to invest more in growth, enhancing their profitability [7]

Core Business Performance - The core Canadian retail business demonstrated strength with same-store sales growth of 5.5%, contributing to a 15% year-over-year growth in the brick-and-mortar segment [1] - High Tide added 27 stores in 2025, reaching a total of 218 locations, and plans to add another 20-30 stores in 2026, targeting over 350 locations long-term [7][8] Financial Highlights - Fourth-quarter revenue rose 19% year-over-year and 10% sequentially, primarily driven by the brick-and-mortar segment, with consolidated gross margin at 26% [3] - Record performance was reported with revenue of CAD 164 million and Adjusted EBITDA of CAD 12.4 million, implying an annualized revenue run rate exceeding CAD 650 million [4][8] - Adjusted EBITDA increased by 51% year-over-year and 17% sequentially, with a record Adjusted EBITDA margin of 9.4% in the brick-and-mortar segment [2] Operational Efficiency - Salaries and wages fell to 11.5% of revenue, the lowest level in nine quarters, while general and administrative expenses were 4.3% of revenue [2] - Annualized revenue per square foot was CAD 1,775 in the quarter, with market share across five provinces increasing to 12% from 11% a year earlier [10] Loyalty and Membership Growth - Cabana Club membership reached 2.5 million, up 45% year-over-year, with a long-term target raised to 3 million members [9] - The Canadian ELITE member count reached 151,000, up 107% year-over-year, indicating increased shopping frequency and larger basket sizes among these members [9] Acquisition Impact - The Remaxion acquisition contributed nearly CAD 10 million in revenue but pressured margins due to inventory and expiry issues, with improvements expected by late Q2/Q3 [6][11] - High Tide is diversifying supply routes beyond Portugal, citing new sourcing strategies that could reduce costs by 30%-40% [14] Cash Flow and Balance Sheet - Free cash flow for Q4 was CAD 1.3 million, with a total of CAD 12.12 million for the full fiscal year, supporting internal funding for store expansion [16] - Total debt stood at CAD 65.5 million, with cash and cash equivalents at CAD 47.9 million and no upcoming maturities for over two years [17] Market Opportunities - The company is exploring partnerships with U.S. operators following an executive order on cannabis rescheduling, while also considering potential CBD-related policy changes that could benefit its U.S. CBD brands [17][18]

Financial Data and Key Metrics Changes - High Tide reported record revenue of CAD 164 million for Q4, representing a 19% year-over-year increase and a 10% sequential increase [6][28] - The annual revenue run rate exceeded CAD 650 million, with record Adjusted EBITDA of CAD 12.4 million, marking a 51% year-over-year growth [6][30] - Consolidated gross margins were 26% in Q4, consistent with the previous year, while Adjusted EBITDA margins reached a new record of 9.4% [29][30] Business Line Data and Key Metrics Changes - The brick-and-mortar segment led revenue growth, achieving a 15% year-over-year increase, driven by same-store sales growth of 5.5% [6][28] - Cabanalytics, the business data and insight platform, generated CAD 13.1 million in Q4, up 20% year-over-year [28] - The adjusted EBITDA for the brick-and-mortar segment was CAD 14.1 million, highlighting strong cost controls and operational efficiency [30] Market Data and Key Metrics Changes - Canna Cabana's market share in the five provinces increased to 12%, up from 11% a year ago, while total industry sales in these provinces grew by only 4% [11][12] - The average Canna Cabana store had an annual revenue run rate of CAD 2.6 million, significantly higher than the peer average of CAD 1.2 million [11] - The company added 27 stores in 2025, with plans to add another 20-30 stores in 2026, indicating a robust growth strategy [7][8] Company Strategy and Development Direction - High Tide is focused on organic growth, with a strong emphasis on high-quality locations for new stores [8] - The company is exploring M&A opportunities, particularly in the German medical cannabis market, following the acquisition of a majority stake in Remaxion [17][19] - The strategy includes leveraging relationships with licensed producers to procure cannabis at lower costs, enhancing operational efficiency [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in the German market, despite short-term challenges related to inventory [41][43] - The company is confident in its ability to navigate competitive pressures in Canada, with a strong brand and customer loyalty driving same-store sales growth [56][57] - Management highlighted the potential for significant growth in the U.S. market following regulatory changes, while remaining cautious about entering partnerships [78][79] Other Important Information - High Tide generated CAD 12 million of Free Cash Flow for the fiscal year, meeting its goal of remaining positive [35] - The company has a strong balance sheet with total debt of CAD 65.5 million and CAD 47.9 million in cash and cash equivalents [35] - The integration of Remaxion is progressing well, with expectations for improved financial contributions in the future [20][22] Q&A Session Summary Question: Impact of inventory issues in Germany on Q1 results - Management acknowledged that the Portugal inventory issue impacted Q4 results and will continue to affect Q1, but expressed optimism for recovery in subsequent quarters [39][41] Question: Brick-and-mortar business margins and growth - Management confirmed that brick-and-mortar margins have increased for four consecutive quarters, driven by strong sales and operational efficiencies [44][46] Question: Competition and M&A environment - Management noted that smaller competitors are exiting the market, creating opportunities for M&A, and expressed confidence in High Tide's growth prospects [59][60] Question: Budtender training and engagement - Management emphasized the importance of budtender training and engagement to enhance customer experience and brand loyalty [66][69] Question: Strategic partnerships in the U.S. market - Management indicated that while there is interest from U.S. operators, they are proceeding cautiously and evaluating potential partnerships as regulations evolve [78][79]

Core Viewpoint - Herbal Dispatch Inc. has commenced trading on the OTCQB Venture Market under the ticker symbol "LUFFF", enhancing accessibility for U.S. investors and increasing the company's visibility within the North American investment community [1][2]. Company Overview - Herbal Dispatch Inc. is a leading operator of cannabis e-commerce platforms in Canada, providing quality medical and recreational products to consumers at competitive prices [5]. - The company is actively expanding through exports to international markets, positioning itself for sustained growth and new revenue opportunities [5]. Market Positioning - The OTCQB listing is expected to improve liquidity and visibility for U.S. shareholders, allowing the company to capitalize on growing optimism in the American cannabis sector [3]. - Recent executive actions by the U.S. administration to expedite the rescheduling of cannabis to Schedule III under the Controlled Substances Act have generated positive investor sentiment, indicating greater federal recognition of cannabis's medical applications [3]. Strategic Initiatives - The CEO of Herbal Dispatch emphasized the importance of the OTCQB upgrade as a reflection of the company's commitment to higher standards of transparency and broader access for investors [4]. - The company is executing strategic growth initiatives in the European cannabis market, which strengthens its capital markets strategy [4].

Financial Data and Key Metrics Changes - The company reported a record Q2 net revenue of $218 million, with an adjusted EBITDA of $8.4 million and a reported EPS loss of $0.02, reflecting a significant improvement in performance metrics [4][22]. - The net loss for the quarter was $43.5 million, a 49% improvement year-over-year compared to $85.3 million, with cash flow used in operations reduced to $8.5 million from $40.7 million last year [27][28]. Business Line Data and Key Metrics Changes - Cannabis revenue increased to $68 million, with international cannabis revenue growing 36% year-over-year and 51% sequentially to $20 million [9][22]. - Beverage revenue totaled $50 million, impacted by headwinds in the craft beer segment, while distribution revenue grew by 26% year-over-year to $85 million [11][23]. - Wellness revenue remained flat at $14.6 million, driven by innovation in product offerings [20][24]. Market Data and Key Metrics Changes - The Canadian adult-use cannabis sales channel net of excise tax grew to $46 million, with recreational cannabis growing 6% in the quarter [12][22]. - The international cannabis market, particularly in Europe, is seen as a significant growth opportunity, with expectations for continued expansion in Germany, the UK, and Poland [10][39]. Company Strategy and Development Direction - The company aims to leverage its strong balance sheet and liquidity to capitalize on regulatory changes in the cannabis industry, particularly in the U.S. [5][29]. - The strategic focus includes enhancing operational efficiency in the beverage segment and expanding pharmacy reach in Germany through Tilray Pharma [11][18]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for the second half of fiscal 2026, citing a diversified platform and improving fundamentals [21][29]. - The company is preparing for potential regulatory changes in the U.S. that could significantly impact the cannabis market, particularly with the rescheduling of cannabis [6][54]. Other Important Information - The company operates more than 40 brands in over 20 countries and is a leader in the cannabis market, with a strong position in both the Canadian and international markets [5][6]. - The company has a robust cash position of approximately $292 million, providing flexibility for strategic opportunities [5][28]. Q&A Session Summary Question: What can the industry do to improve the regulatory outcome regarding the intoxicating hemp ban? - Management is working with legislators to extend the deadline or modify regulations to allow for a regulated amount of milligrams to be sold nationally [30][31]. Question: Can you quantify how much supply was held back from the Canadian market? - Approximately $5 million worth of supply was held back to redeploy into higher-margin international markets [32]. Question: What drove the substantial increase in distribution sales? - The increase was driven by new distribution channels and competitive pricing, with a focus on high-margin SKUs [34][36]. Question: What are the expectations for growth within the Canadian market? - Management expects mid- to high single-digit growth in the Canadian market, supported by new product launches and strong demand [40][41]. Question: Can you provide more color on the CC Pharma business and its distribution reach? - The company aims to triple its distribution reach in Germany, leveraging its sales organization to sell more medical cannabis [44][46]. Question: What is the long-term outlook for the beverage business? - Management remains confident in the beverage business, emphasizing the importance of integration and the potential for future growth, particularly with cannabis-infused drinks [51][53].

Core Viewpoint - The reclassification of cannabis from Schedule I to Schedule III under the U.S. Controlled Substances Act is a significant milestone that recognizes its medical use and is expected to facilitate clinical research and partnerships for MediPharm Labs [1][4][10]. Industry Impact - The reclassification is anticipated to accelerate cannabis-related medical research by removing barriers that have historically limited U.S. clinical trials, allowing for standardized medical-grade cannabis access [4][5]. - The change may lead to increased interest from institutional investors in research-oriented cannabis companies, as regulatory barriers evolve [10]. Company Positioning - MediPharm Labs is strategically positioned to benefit from this reclassification due to its FDA site registration, Drug Establishment License, and experience in supplying clinical trial materials to the U.S. [2][6]. - The company has a proven track record, having supplied products for over 10 active clinical trials, including significant studies funded by the U.S. National Institutes of Health [7][8]. Research and Development Opportunities - The reclassification is expected to create a pipeline of researchers ready to advance clinical trials and evaluate compliant active pharmaceutical ingredient suppliers [5]. - MediPharm Labs has developed international licensing and regulatory expertise, enabling it to support new research initiatives that require pharmaceutical-grade standards [6][9]. Future Growth Potential - The company anticipates that the reclassification will strengthen its ability to expand U.S. clinical trial partnerships and facilitate significant growth in clinical research [3][10]. - MediPharm Labs' unique combination of experience and regulatory credentials positions it to immediately support new research initiatives in the U.S. and globally [8][9].