Chicago Atlantic BDC, Inc. is a business development company focused on providing capital tailored to the needs of established companies in the cannabis industry.

# Chicago Atlantic BDC, Inc. - Company Overview

## Business Description
Chicago Atlantic BDC, Inc. is a business development company that focuses on providing capital to established companies within the cannabis industry. The company aims to support the growth of its clients by offering tailored financial solutions, including senior secured loans and preferred equity investments.

### Core Operations
- **Investment Focus**: Chicago Atlantic primarily invests in the cannabis sector, which includes cultivation, processing, and retail operations.
- **Capital Structure**: The company structures its investments to maximize return while managing risk, including various debt and equity instruments.

## Key Metrics
- **Number of Customers**: While specific customer numbers are not disclosed, the company has forged significant relationships within the cannabis sector, often partnering with growth-stage companies.
- **Employees**: The company operates with a lean team of professionals experienced in finance, investment, and the cannabis industry. The exact number of employees is not provided.
  
## Financial Performance
- **Revenue**: Chicago Atlantic's revenue primarily comes from interest income on its debt investments, along with fees from management. Specific revenue figures for the fiscal year ending December 31, 2024, are not stated in the provided document.
- **Income**: The company reports its financial results under GAAP standards. Specific income figures are not available, but the firm typically aims for positive returns on its investments.

## Market Presence
- **Stock Information**: Chicago Atlantic's common stock trades on the NASDAQ under the symbol "LIEN." 
- **Market Capitalization**: As of June 30, 2024, the market value of shares held by non-affiliates was approximately $53.4 million, based on a closing price of $11.82 per share.

## Growth Strategy
Chicago Atlantic is committed to capitalizing on the evolving landscape of the cannabis market. The company seeks to:
- Identify and support scalable cannabis businesses with strong management teams and proven business models.
- Maintain a diversified investment portfolio to mitigate risk while pursuing growth opportunities in both mature and emerging market areas.

## Regulatory Compliance
As a Business Development Company, Chicago Atlantic adheres to regulations set forth by the Securities and Exchange Commission (SEC), including filing annual reports and maintaining transparency regarding financial performance and operational strategies.

Overall, Chicago Atlantic BDC, Inc. positions itself as a vital financial partner within the cannabis industry, targeting companies that require capital for expansion while navigating the complexities of a regulated and rapidly evolving market.

Silver Spike Investment Corp. (SSIC) is a Maryland-based specialty finance company focused on investing in the cannabis ecosystem through loans and equity investments.

# Silver Spike Investment Corp. (SSIC)

## Overview
Silver Spike Investment Corp. (SSIC) is a Maryland-based specialty finance company that operates as an externally managed, closed-end, non-diversified management investment company and has elected to be treated as a business development company (BDC) under the Investment Company Act of 1940. The company primarily focuses on investing in the cannabis ecosystem through loans and equity investments in privately held cannabis companies.

### Key Details

- **Incorporation Date**: January 25, 2021
- **Public Listing**: Completed IPO on February 8, 2022, trading on the Nasdaq Global Market under the ticker symbol "SSIC".
- **Total Gross Proceeds from IPO**: Approximately $83.3 million
- **Share Offering**: Initial public offering of 6,071,429 shares at $14.00 per share, with an additional 142,857 shares sold post-IPO for approximately $2 million.
- **Fiscal Year End**: Changed from March 31 to December 31, effective November 8, 2022.
  
## Business Model
SSIC invests specifically in the cannabis industry, focusing on providing credit and equity financing alternatives to:

- Cannabis companies
- Cannabis-enabling technology firms
- Companies associated with health and wellness related to cannabis

### Investment Focus
- **Types of Investments**: Primarily consists of secured debt, unsecured debt, equity warrants, and direct equity investments.
- **Investment Size**: Typically ranges between $4 million to $40 million per investment.
- **Targeted Revenue Contribution**: Each cannabis company in which SSIC invests must derive at least 50% of its revenues or profits from activities related to cannabis.

## Financial Targets and Strategy
- **Objective**: Maximize risk-adjusted returns on equity for shareholders through current income generation and capital appreciation.
- **Pipeline**: Reviewing approximately $422 million in potential investments in various underwriting stages.
  
## Management and Advisory
- **Investment Adviser**: Silver Spike Capital, LLC (SSC).
- **Key Personnel**: Includes Scott Gordon (CEO), Umesh Mahajan (CFO), William Healy, and Dino Colonna (CFA).

## Market Positioning and Growth Potential
- **Customers**: The company partners with private equity firms, entrepreneurs, and management teams primarily in the cannabis sector.
- **Market Overview**: Rapid growth in the legal cannabis market, reaching an estimated $31.6 billion in U.S. retail sales in 2023, projected to grow to $67.5 billion by 2030.
  
## Employees and Operations
- **Employees**: SSIC does not directly employ staff but relies on its Adviser, SSC, for operations and management functions.
- **Office Location**: Main office is located at 600 Madison Avenue, Suite 1800, New York, NY 10022.

## Financial Performance (as of December 31, 2023)
- **Revenue**: Information regarding total revenue and net income was not specified in the provided material.
- **Investment Portfolio**: Composed largely of loans to private cannabis companies, generating returns primarily through interest income and equity stakes.

### Regulatory and Competitive Landscape
- **Regulatory Framework**: Subject to both federal and state regulations concerning cannabis, which may affect operational strategies.
- **Sector Competition**: Competes with various financial services and investment businesses, including private equity and traditional banking institutions, primarily around cannabis investments.

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### Conclusion
SSIC seeks to leverage expertise in the cannabis industry to provide strategic investment solutions, focusing on financing opportunities that align with evolving market conditions and regulatory landscapes. The company's operations are characterized by a commitment to maximizing returns while navigating the complexities of a rapidly changing industry.

Chicago Atlantic BDC, Inc.

10-K / April 18, 2025

10-K / March 28, 2024

10-K / April 18, 2025

Chicago Atlantic BDC, Inc. - Company Overview

Business Description

Core Operations

Key Metrics

Financial Performance

Market Presence

Growth Strategy

Regulatory Compliance