Silver Spike Investment (US:SSIC)2024-03-28 17:53Financial Data and Key Metrics Changes - For the fiscal year ended December 31, 2023, the company reported investment income of $11.9 million and total expenses of $5.3 million, resulting in net investment income of $6.6 million, which would have been higher without the loan portfolio acquisition expenses [2] - The net investment income per share for the year was $1.07, with a declared dividend of $1.33 [2] - For Q4 2023, gross investment income was $3.6 million, up from $2.9 million in the previous quarter, with net investment income of $1.7 million for the quarter [29] Business Line Data and Key Metrics Changes - The total investment value as of December 31, 2023, was over $54 million, with an average yield to maturity across all investments of 18% [7] - The company has a strong deal pipeline of over $420 million, indicating a robust origination effort despite a slow period in the cannabis sector [24] Market Data and Key Metrics Changes - The company noted improvements in key markets such as California and Michigan, with prices stabilizing and operators re-engaging on growth plans [19] - Positive developments in various states regarding adult-use legislation were highlighted, with Missouri exceeding expectations [33] Company Strategy and Development Direction - The company announced an expansion of its investment strategy to include companies outside of the cannabis and health and wellness sectors, effective around April 22, 2024 [31] - The anticipated closing of the loan portfolio acquisition is expected in mid-2024, subject to SEC review [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the industry poised for growth, with improving consumer sentiment and strong demand for cannabis products [33] - The management acknowledged that while some states have underperformed, overall market conditions are improving, and operators are feeling more confident [33] Other Important Information - The company incurred $0.7 million in expenses related to the loan portfolio acquisition, primarily legal fees [15] - The net assets at the end of the period were $85.6 million, with a net asset value per share of $13.77 [15] Q&A Session Summary Question: What are the risks associated with the loan portfolio acquisition not closing? - Management indicated that they are focused on the current plan and believe the transaction is sound for shareholders, with no immediate plan B discussed [35][38] Question: Can you provide more details on improving market conditions? - Management noted that while some states have had disappointing growth, others like Missouri have exceeded expectations, and overall, the industry is seeing positive developments [19][33]