As of September 30, 2024, Chicago Atlantic BDC, Inc. (formerly Silver Spike Investment Corp.) reported total assets of $89.3 million, a slight increase from $88.6 million at the end of 2023. Investments at fair value rose to $55.8 million from $54.1 million, while total liabilities surged to $6.7 million, up from $3.0 million. Consequently, total net assets decreased to $82.5 million from $85.6 million, resulting in a net asset value (NAV) per share of $13.28, down from $13.77.

For the three months ending September 30, 2024, total investment income increased to $3.2 million from $2.9 million in the same period of 2023. However, total expenses rose significantly to $3.2 million from $1.3 million, leading to a net investment income of $14,512, a sharp decline from $1.6 million year-over-year. The net increase in net assets resulting from operations for the quarter was a loss of $165,012, compared to a gain of $1.3 million in the prior year. For the nine-month period, net investment income also fell to $1.5 million from $4.9 million, with a net increase in net assets from operations of $1.6 million, down from $4.8 million.

The company’s cash and cash equivalents totaled $30.1 million, a decrease from $32.6 million at the end of 2023. Notably, the company reported a significant increase in transaction expenses related to a loan portfolio acquisition, totaling $5.1 million for the nine months ended September 30, 2024, with no corresponding expenses in 2023.

Strategically, on October 1, 2024, Chicago Atlantic completed a significant acquisition of a loan portfolio valued at $219.6 million, issuing 16.6 million shares in exchange. This acquisition is part of a broader strategy to expand investment opportunities beyond the cannabis sector, which was announced in February 2024. The company also established a joint venture to combine investment management businesses and entered into an Expense Limitation Agreement to cap operating expenses at 2.15% of net assets through September 2025.

The company’s investment portfolio remains heavily concentrated in the cannabis industry, with 66.8% of net assets in debt securities. As of September 30, 2024, all investments were categorized as Level 3, indicating reliance on significant estimates for fair value determination. The company continues to manage various risks, including market, credit, and interest rate risks, while maintaining adequate liquidity to fund its commitments.