Chicago Atlantic Announces Acquisition of Loan Portfolio and Strategic Partnership with Silver Spike Investment Corp.

Strategic Insights -

Chicago Atlantic, a leading investor in the cannabis sector, has announced the acquisition of a loan portfolio from Chicago Atlantic Loan Portfolio, LLC in exchange for newly issued shares of Silver Spike Investment Corp.'s common stock. The acquisition has resulted in the creation of the only publicly listed Business Development Company (BDC) focused on lending to cannabis companies, with net assets of approximately $300 million and investments in 28 portfolio companies. The company's management team has also undergone significant changes, with Andreas Bodmeier assuming the role of Chief Executive Officer and Dino Colonna taking on the role of President. The partnership with Silver Spike Investment Corp. is expected to drive collective results for the benefit of shareholders.

Key Takeaways:

  • The acquisition of the loan portfolio by Silver Spike Investment Corp. has resulted in a 72.8% stake in the company for CALP and a 27.2% stake for legacy SSIC stockholders.
  • The company, previously known as Chicago Atlantic BDC, has been renamed to reflect the acquisition and will trade under the ticker symbol "LIEN" starting on October 2, 2024.
  • The company has a portfolio of 28 investments and will focus on lending to cannabis companies, which are expected to benefit from the structural reasons for an insufficient supply of capital.
  • The partnership with Silver Spike Investment Corp. combines two leading investment platforms in the cannabis industry.
  • The management team of the company will continue to be led by Scott Gordon, Executive Chairman, and Umesh Mahajan, Co-Chief Investment Officer, Chief Financial Officer, and Secretary.
  • The company expects to benefit from the accretive opportunity created by the partnership with Silver Spike Investment Corp.

Statistics:

  • $300 million: The net assets of Silver Spike Investment Corp. following the acquisition.
  • 28: The number of investment portfolio companies held by Silver Spike Investment Corp.
  • 72.8%: The stake in Silver Spike Investment Corp. held by CALP following the acquisition.
  • 27.2%: The stake in Silver Spike Investment Corp. held by legacy SSIC stockholders following the acquisition.
  • October 2, 2024: The date on which Silver Spike Investment Corp. will begin trading under the new ticker symbol "LIEN".

Sources:

  • Silver Spike Investment Corp.
  • Chicago Atlantic
  • [Chicago Atlantic Press Release, dated undisclosed.]
  • [Silver Spike Investment Corp. Financial Statement, dated undisclosed.]