LIEN 8-K
Chicago Atlantic BDC, Inc. (LIEN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): August 14, 2025 ( |
(Exact name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
| (Address of Principal Executive Offices) | (Zip Code) |
| Registrant’s Telephone Number, Including Area Code: |
| Not Applicable |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| The |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On August 14, 2025, Chicago Atlantic BDC, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2025. The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed “filed” for any purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in Item 2.02 of this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
On August 14, 2025, the Company disseminated an earnings presentation to be used in connection with its conference call and live webcast on August 14, 2025 at 9:00 a.m. Eastern time to discuss its financial results for the second quarter ended June 30, 2025. The earnings presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 furnished herewith, is being furnished and shall not be deemed “filed” for any purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section. The information in Item 7.01 of this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
d) Exhibits
| Exhibit Number |
Description | |
| 99.1 | Press release, dated August 14, 2025. | |
| 99.2 | Earnings Presentation, dated August 14, 2025. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CHICAGO ATLANTIC BDC, INC. | ||
| Date: August 14, 2025 | By: | /s/ Thomas Geoffroy |
| Interim Chief Financial Officer | ||
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Exhibit 99.1
Chicago Atlantic BDC, Inc. Reports Second Quarter 2025 Financial Results
NEW YORK, August 14, 2025 --- Chicago Atlantic BDC, Inc. (“LIEN” or the “Company”) (NASDAQ: LIEN), a specialty finance company that has elected to be regulated as a business development company, today announced its financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Highlights and Subsequent Activity
| ● | Total gross investment income of $13.1 million |
| ● | Net investment income of $7.7 million, or $0.34 per weighted average share outstanding |
| ● | Total investment portfolio of $307.5 million at fair value |
| ● | Net asset value (“NAV”) per share was $13.23 on June 30, 2025 |
| ● | Declared a dividend of $0.34 per share for the quarter ending September 30, 2025 payable on October 10, 2025 to shareholders of record of September 29, 2025 |
| ● | Funded nine portfolio companies with $39.1 million in aggregate par value during the second quarter of 2025 |
| ● | Subsequent to quarter end, the Company funded $17.2 million in investments across five borrowers |
| ● | As of June 30, 2025, there were 22,820,408 common shares issued and outstanding on a basic and fully diluted basis |
Peter Sack, Chief Executive Officer of the Company, commented, “Through a consistent and measured approach, we deployed $56 million in gross fundings by principal value during the second quarter and to date in the third quarter. These investments were partially funded with borrowings on our new senior credit facility. With the originations pipeline of cannabis and non-cannabis opportunities growing to over $780 million across the Chicago Atlantic platform, we believe the credit facility will provide a distinct advantage in meeting the needs for borrowers’ upcoming debt maturities, growth capital and potential ESOP transactions.”
Portfolio and Investment Activity
| ● | As of June 30, 2025, the Company’s investment portfolio had an aggregate fair value of approximately $307.5 million across 31 portfolio companies. |
| ● | During the quarter ended June 30, 2025, the Company funded nine portfolio companies with an aggregate par value of $39.1 million, three of which were in new borrowers. Subsequent to quarter end, the Company funded five investments with an aggregate par value of $17.2 million, three of which were to new borrowers. |
| ● | During the quarter ended June 30, 2025, the Company had principal repayments of $22.3 million of which $3.1 million was receivable as of June 30, 2025. |
| ● | As of June 30, 2025, there were no loans on non-accrual status. |
Results of Operations
For the three months ended June 30, 2025, total investment income was approximately $13.1 million. For the three months ended June 30, 2025, the Company incurred net expenses of approximately $5.4 million, resulting in net investment income of approximately $7.7 million, or $0.34 per weighted average share, and a net increase in net assets from operations of approximately $8.6 million, or $0.38 per weighted average share.
Liquidity and Capital Resources
As of June 30, 2025, the Company had $108.8 million of liquidity including $13.8 million of cash and cash equivalents and $5.0 million of borrowings outstanding on its $100 million senior credit facility. As of August, 14 2025 the Company has no outstanding borrowings on its senior credit facility and $125.4 million of liquidity.
Net Asset Value
As of June 30, 2025, NAV per share was $13.23 compared with $13.19 as of March 31, 2025. The slight increase in NAV per share was primarily driven by growth in net assets from operations, offset by dividend payments. Total net assets as of June 30, 2025 were $301.8 million compared to $301.0 million as of March 31, 2025.
Dividend
The Company’s Board of Directors declared a cash dividend of $0.34 per share for the quarter ending September 30, 2025 payable on October 10, 2025 to shareholders of record of September 29, 2025
Conference Call and Quarterly Earnings Presentation
The Company will host a conference call and live audio webcast, both open for the general public to hear, to discuss the Company's second quarter 2025 financial results at 9:00 a.m. Eastern Time on Thursday, August 14, 2025. The number to call for the conference call is (833) 630-1956 (international callers: 412-317-1837). The live audio webcast of the call will also be available on the Company’s website at lien.chicagoatlantic.com.
A replay of the call will be available at lien.chicagoatlantic.com by the end of day on August 14, 2025.
Call Details – Chicago Atlantic
BDC, Inc. Second Quarter 2025 Financial Results:
| ● | When: Thursday, August 14, 2025 |
| ● | Time: 9:00 a.m. ET |
| ● | Webcast Live Stream: https://edge.media-server.com/mmc/p/f59d9m79 |
| ● | Replay: lien.chicagoatlantic.com |
LIEN posted its Second Quarter 2025 Earnings Presentation on the Events and Presentations page of its website, lien.chicagoatlantic.com. LIEN routinely posts important information for investors on its website. The Company intends to use this website as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. The Company encourages investors, analysts, the media and others interested in LIEN to monitor the Investor Relations page of its website, in addition to following its press releases, Securities and Exchange Commission (“SEC”) filings, publicly available earnings calls, presentations, webcasts and other information posted from time to time on the website. Please visit the IR Resources section of the website to sign up for email notifications.
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About Chicago Atlantic BDC, Inc.
The Company is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, and has elected to be treated as a regulated investment company for U.S. federal income tax purposes. The Company’s investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies. The Company is managed by Chicago Atlantic BDC Advisers, LLC, an investment manager focused on the cannabis industry and other niche or underfollowed sectors. For more information, please visit lien.chicagoatlantic.com.
Forward-Looking Statements
Certain information contained herein may constitute “forward-looking statements” that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the Company, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Company’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in the Company’s filings with the SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which the Company makes them. The Company does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
Contact
Tripp Sullivan
Lisa Kampf
SCR Partners
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CHICAGO ATLANTIC BDC, INC.
Statements of Assets and Liabilities
| June 30, 2025 | March 31, 2025 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| ASSETS | ||||||||
| Investments at fair value: | ||||||||
| Non-control/non-affiliate investments at fair value (amortized cost of $305,718,723 and $288,402,119, respectively) | $ | 307,499,004 | $ | 289,262,741 | ||||
| Cash and cash equivalents | 13,829,354 | 14,921,739 | ||||||
| Due from affiliates | 6,517,715 | 5,202,278 | ||||||
| Interest receivable | 2,480,774 | 3,061,836 | ||||||
| Prepaid expenses and other assets | 1,423,572 | 1,250,109 | ||||||
| Total assets | $ | 331,750,419 | $ | 313,698,703 | ||||
| LIABILITIES | ||||||||
| Payable for Investments Purchased | $ | 11,760,000 | $ | - | ||||
| Distributions payable | 7,758,939 | 7,758,931 | ||||||
| Revolving line of credit | 5,000,000 | - | ||||||
| Income-based incentive fees payable | 1,968,640 | 2,122,865 | ||||||
| Management fee payable | 1,345,331 | 1,339,250 | ||||||
| Due to affiliates | 724,306 | 197,344 | ||||||
| Professional fees payable | 629,000 | 756,602 | ||||||
| Capital gains incentive fees payable | 299,006 | 115,074 | ||||||
| Other payables | 155,002 | 62,816 | ||||||
| Unearned interest income | 126,136 | 213,269 | ||||||
| Offering costs payable | 92,615 | - | ||||||
| Deferred financing costs payable | 47,881 | 114,548 | ||||||
| Total liabilities | $ | 29,906,856 | $ | 12,680,699 | ||||
| Commitments and contingencies (Note 6) | ||||||||
| NET ASSETS | ||||||||
| Common stock, $0.01 par value, 100,000,000 shares authorized, 22,820,408 and 22,820,386 shares issued and outstanding, respectively | $ | 228,204 | $ | 228,204 | ||||
| Additional paid-in-capital | 303,152,264 | 303,152,031 | ||||||
| Distributable earnings (accumulated loss) | (1,536,905 | ) | (2,362,231 | ) | ||||
| Total net assets | $ | 301,843,563 | $ | 301,018,004 | ||||
| NET ASSET VALUE PER SHARE | $ | 13.23 | $ | 13.19 | ||||
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CHICAGO ATLANTIC BDC, INC.
Statements of Operations
(Unaudited)
| For the Three Months Ended | ||||||||
June 30, 2025 | March 31, 2025 | |||||||
| INVESTMENT INCOME | ||||||||
| Non-control/non-affiliate investment income | ||||||||
| Interest income | $ | 11,906,066 | $ | 11,279,456 | ||||
| Fee income | 1,173,972 | 643,546 | ||||||
| Total investment income | 13,080,038 | 11,923,002 | ||||||
| EXPENSES | ||||||||
| Income-based incentive fees | 1,968,637 | 1,916,277 | ||||||
| General and administrative expense | 1,366,783 | 974,477 | ||||||
| Management fee | 1,345,331 | 1,260,875 | ||||||
| Legal expenses | 313,139 | 250,926 | ||||||
| Interest expense | 301,260 | 145,381 | ||||||
| Professional fees | 275,860 | 215,726 | ||||||
| Capital gains incentive fees | 183,932 | (6,813 | ) | |||||
| Other expenses | 169,717 | 144,422 | ||||||
| Audit expense | 153,750 | 190,002 | ||||||
| Sub-administrator fees | 128,805 | 157,785 | ||||||
| Transaction expenses related to the Loan Portfolio Acquisition | - | - | ||||||
| Excise tax expense | - | - | ||||||
| Total expenses | 6,207,214 | 5,249,058 | ||||||
| Waiver of General and administrative expense | - | (658,477 | ) | |||||
| Expense limitation agreement | (791,783 | ) | (316,000 | ) | ||||
| Net expenses | 5,415,431 | 4,274,581 | ||||||
| NET INVESTMENT INCOME (LOSS) | 7,664,607 | 7,648,421 | ||||||
| NET REALIZED GAIN (LOSS) FROM INVESTMENTS | ||||||||
| Non-controlled non-affiliate investments | - | - | ||||||
| Net realized gain (loss) from investments | - | - | ||||||
| NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | ||||||||
| Non-controlled/non-affiliate investments | 919,658 | (34,064 | ) | |||||
| Net change in unrealized appreciation (depreciation) on investments | 919,658 | (34,064 | ) | |||||
| Net realized and unrealized gains (losses) | 919,658 | (34,064 | ) | |||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 8,584,265 | $ | 7,614,357 | ||||
| NET INVESTMENT INCOME (LOSS) PER SHARE - BASIC AND DILUTED | $ | 0.34 | $ | 0.34 | ||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC AND DILUTED | $ | 0.38 | $ | 0.33 | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED | 22,820,405 | 22,820,386 | ||||||
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Exhibit 99.2
CONFIDENTIAL | Chicago Atlantic BDC, Inc. Second Quarter 2025 Earnings Presentation Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) August 14, 2025
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 2 The information contained in this presentation should be viewed in conjunction with the earnings conference call of Chicago A tla ntic BDC, Inc. (the “Company”) (Nasdaq: LIEN) held on August 14, 2025, and the Company’s Quarterly Report on Form 10 - Q for the quarter ended June 30, 2025. The information contained herein may not be used, reproduced or distributed to others, in whole or in part, for any other purpose without the prior written consent of the Company. This presentation does not constitute a prospectus and should under no circumstances be understood as an offer to sell or the so licitation of an offer to buy the Company’s common stock or any other securities nor will there be any sale of the common stock or any other securities referred to in this presentation in any state or jurisdiction in whic h s uch offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction. Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by the Comp any or as legal, accounting or tax advice. An investment in securities of the type described herein presents certain risks. Nothing contained herein shall be relied upon as a promise or representation whether as to the past o r f uture performance. Information regarding performance by the Company’s management team and their affiliates is presented for informational purposes only. You should not rely on the historical record of the Company’s man agement team and their affiliates as indicative of the future performance of an investment in the Company or the returns the Company will, or is likely to, generate going forward. Certain information contained herein has been derived from sources prepared by third parties. While such information is belie ved to be reliable for the purposes used herein, the Company makes no representation or warranty with respect to the accuracy of such information. This presentation contains references to trademarks and service marks belon gin g to other entities. Solely for convenience, trademarks and trade names referred to in this presentation may appear without the ® or symbols, but such references are not intended to indicate, in any way, that the applicable licensor will not assert, to the f ul lest extent under applicable law, its rights to these trademarks and trade names. The Company does not intend its use or display of other companies’ trade names, trademarks or ser vic e marks to imply a relationship with, or endorsement or sponsorship of the Company by, any other companies. The information contained in this presentation is summary information that is intended to be considered in the context of oth er public announcements that the Company may make, by press release or otherwise, from time to time. The Company undertakes no duty or obligation to publicly update or revise the information contained in this presentatio n, except as required by law. These materials contain information about the Company, certain of its personnel and affiliates and its historical performance. You should not view information related to the past performance of t he Company as indicative of the Company’s future results, the achievement of which cannot be assured. Past performance does not guarantee future results, which may vary. The value of investments and the income derived from inve stm ents will fluctuate and can go down as well as up. A loss of principal may occur. Certain information contained herein may constitute “forward - looking statements” that involve substantial risks and uncertaintie s. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward - looking statements are not historical facts, but rather are based on curren t expectations, estimates and projections about the Company, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as “anticipates,” “expects,” “ int ends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward - looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Company’s control and difficult to predic t a nd could cause actual results to differ materially from those expressed or forecasted in the forward - looking statements including, without limitation, the risks, uncertainties and other factors identified in the Company’s fili ngs with the Securities and Exchange Commission (the “SEC”). Investors should not place undue reliance on these forward - looking statements, which apply only as of the date on which the Company makes them. The Company does not under take any obligation to update or revise any forward - looking statements or any other information contained herein, except as required by applicable law. Disclaimers and Forward - Looking Statements
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 3 Chicago Atlantic BDC, Inc: Company Overview ~$780M near - term pipeline under evaluation (1) $2.8B+ in loans closed since platform inception (1) 100+ cannabis loans closed across platform (1) $308M total portfolio investment value 16.1% gross weighted - average yield of Company debt investments (2) 100% of current company debt investments are senior secured » Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) (the “Company” or “Us”) is externally managed by Chicago Atlantic BDC Advisers, LLC (the “Adviser”) » The Adviser, a majority - owned subsidiary of Chicago Atlantic Group, LP (together with its affiliates, “Chicago Atlantic”), is an SEC - registered investment adviser and works with its clients to originate, underwrite and deploy primarily first - lien, senior - secured fixed and floating rate debt primarily to the cannabis industry’s most established operators and to other niche companies overlooked by the broader market » The Adviser focuses on opportunities that are time - sensitive, highly complex or in dislocated sectors where risk is fundamentally mispriced with attractive risk - adjusted returns » Seasoned investment team with decades of multi - sector experience across market cycles and complex legal and regulatory frameworks in credit, special situations, equities, distressed and emerging market debt » Access to Chicago Atlantic’s leading lending platform which typically serves as lead or co - lead arranger, and its proprietary sourcing network and direct originations team 1. As of 6/30/25. Includes all loans closed and active pipeline across the Chicago Atlantic platform. Active pipeline under e val uation includes potential syndications within the Chicago Atlantic Platform only and represents the active pipeline under evaluation of Chica go Atlantic. 2. As of 6/30/25; see page 19 for information regarding the calculation of Gross Weighted Average Portfolio Yield on Debt Investmen ts (“Portfolio Yield”) and Total Portfolio Investment Value .
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 4 Investment Highlights » Strong credit metrics » Only BDC that is primarily focused on the cannabis industry » All debt investments are senior secured » 76% of the portfolio are floating rate loans, of which 46% are at their respective floor » Closed $100 million senior secured revolving credit facility earlier this year, providing us ample liquidity for portfolio growth » Part of the largest cannabis focused investment platform A DIFFERENTIATED BDC » Focus on highly complex and highly regulated industries underserved by other capital providers » Direct lending against cash flows and multiple types of collateral in cannabis and the lower middle - market creates a large addressable market » Pricing and structuring power with high barriers to entry FOCUS ON UNDERSERVED SECTORS » Uncorrelated, idiosyncratic credit opportunity in cannabis and the lower middle - market » Other BDCs and private credit funds tend to overlap on sponsor - backed, middle - market lending with similar risk profiles that are typically correlated and lack differentiation » Seek alpha where few capital providers with requisite expertise are present DIVERSIFIED SOURCE OF CREDIT ALPHA
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 5 Dino Colonna, CFA President Umesh Mahajan Co - CIO & Secretary Scott Gordon Executive Chairman & Co - CIO Peter Sack CEO ▪ 23 - year career in various credit, derivatives and equity investments as well as investment banking across global capital markets ▪ Former Co - head of Credit and Partner at Silver Spike Capital, and held various roles at Madison Capital Advisors, Barclays and Forest Investment Management ▪ MBA from ESADE, BSBA from the University of Delaware ▪ 28 - year career in various middle - market, credit and special situations investing ▪ Former Co - head of Credit and Partner at Silver Spike Capital, Former Managing Director at Ascribe Capital and led various roles at Merrill Lynch and Bank of America ▪ MBA from University of Pennsylvania's Wharton School of Business and Btech , Indian Institute of Technology ▪ Over 30 years of investing and asset management experience in emerging markets ▪ Former Founding Partner, CEO and CIO of Silver Spike Capital, Former President of Fintech Advisory, a multi - billion dollar Family Office fund ▪ Investor in the cannabis & psychedelics industry since 2013 ▪ BA Bowdoin College ▪ Former Principal at BC Partners Credit, leading its cannabis practice ▪ Former private equity investor, focusing on distressed industrial opportunities ▪ MBA from University of Pennsylvania’s Wharton School of Business, BA from Yale University, and Fulbright Scholar A SEASONED TEAM WITH DECADES OF EXPERIENCE ACROSS CREDIT, CANNABIS, AND CAPITAL MARKETS Gianni Fazio Chief Accounting Officer Andrew Lovitt Chief Compliance Officer Thomas Geoffroy Chief Financial Officer ▪ Previously a Venture Associate at Adit Ventures where he managed the operations and financial reporting of early & late - stage venture funds. ▪ Licensed Certified Public Accountant ▪ BS & MS, Long Island University ▪ Previously an attorney in the Private Credit group at Katten Muchin Rosenman LLP ▪ Has advised lenders and borrowers in numerous finance transactions, including cash flow and asset - based transactions, leverage buyouts, refinancings & repayments ▪ JD from the University of Pennsylvania and BA from Purdue University ▪ 20 years of accounting and finance experience ▪ Former CFO of a NASDAQ listed mortgage REIT ▪ Licensed Certified Public Accountant ▪ BS from the University of Missouri – St. Louis, Magna Cum Laude Experienced Credit & Cannabis Leadership Team
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 6 About CHICAGO ATLANTIC 1. Capital under management represents total committed investor capital, total available leverage including undrawn capital, and capital invested by co - investors and managed by the firm, as of 3/31/2025. A private credit - focused investment firm founded in 2018 INCEPTION Capital under management: over $1.9B 1 SIZE 95+ professionals, including over 35 investment professionals TEAM Seeking attractive risk - adjusted returns, preservation of capital and income generation predominantly through investment opportunities that are overlooked or underserved by conventional capital sources INVESTMENT PRINCIPLES Chicago, Miami, New York, London LOCATIONS
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 7 CHICAGO ATLANTIC Advantage: Established R elationships with Deal S ources Over the past years, Chicago Atlantic has expanded existing and developed new deal sources, providing for a robust opportunity set . Direct outreach Club deals/other lenders Intermediaries Limited Partners Attorneys Accountants
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 8 Core Strategy Chicago Atlantic focuses on senior - secured lending in the top of the capital structure to the lower middle - market and middle - market. The platform’s primary investment verticals include cannabis, growth and technology finance, loans to esoteric industries / asset - based loans, and liquidity solutions. INVESTMENT STRATEGY DIFFERENTIATORS x Seek above market returns and the preservation of capital x Capitalize on opportunities across industries that are created by complexity or the lack of investor focus x Invest and lend in underserved market niches x Focus on smaller deal sizes with less competition and better relative risk/reward compared to other direct lenders that typically target larger transactions with higher leverage and less covenants x Ability to underwrite highly complex industries x Extensive origination network x Top of the capital structure lending is risk mitigating x Prioritize preservation of capital x Low correlation to other asset classes x Floating - rate loans with high - interest rate floors
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 9 Pro Forma Portfolio Financial Highlights Quarter Ended March 31, 2025 Quarter Ended June 30, 2025 $11.9 million $13.1 million G ROSS I NVESTMENT I NCOME $4.3 million $5.4 million N ET E XPENSES $7.6 million $7.7 million N ET I NVESTMENT I NCOME $301.1 million $301.8 million N ET A SSETS AT E ND OF P ERIOD 22.8 million 22.8 million W EIGHTED A VERAGE S HARES O UTSTANDING 1 P ER S HARE D ATA : $ 0.34 $ 0.34 N ET I NVESTMENT I NCOME $13.19 $ 13.23 N ET A SSET V ALUE AT E ND OF P ERIOD 1. The common shares issued and outstanding as of June 30, 2025 and March 31, 2025, were 22,820,408 and 22,820,386 respective ly
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 10 Pro Forma Portfolio Investment Portfolio Highlights CHICAGO ATLANTIC BDC INC. PORTFOLIO AS OF 6/30/25 (UNAUDITED) $301.8mm N ET A SSET V ALUE ( INCLUDING CASH ) $307.5mm I NVESTMENTS AT F AIR V ALUE 33 N UMBER OF P ORTFOLIO C OMPANIES 16.1% G ROSS W EIGHTED A VERAGE Y IELD OF D EBT I NVESTMENTS 1 76.3% F LOATING R ATE D EBT (% OF D EBT I NVESTMENTS F AIR V ALUE ) 45.8% P ERCENTAGE OF F LOATING R ATE D EBT AT THEIR RESPECTIVE FLOOR 0% N ON - ACCRUALS AT C OST (%) $9mm (3% of investments, at fair value) A VERAGE P OSITION S IZE 4.6% PIK I NTEREST (% OF T OTAL A NNUAL I NTEREST ) 2 P ORTFOLIO C OMPANIES K EY FINANCIAL AND C REDIT M ETRICS 3 $73.4mm R EVENUE (M EDIAN ) $9.7mm EBITDA (M EDIAN ) 4 1.9x S R . S ECURED N ET DEBT / EBITDA ( W EIGHTED A VERAGE ) 4 3.2x I NTEREST C OVERAGE (W EIGHTED A VERAGE ) 4 Based on data as of 6/30/25, unless otherwise noted. Weighted average amounts are weighted by the fair market value of each r esp ective investment. See page 19 in the appendix for footnote legend.
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 11 78% 22% Cannabis Non-Cannabis NON - CANNABIS BY INDUSTRY PORTFOLIO DIVERSIFICATION 1 Portfolio Composition 1. Calculated as a percentage of the total fair value of the Company’s investment portfolio (excluding cash and cash equivalents ). Industries follow NAICS categorizations. 43% 18% 18% 17% 4% Finance and Insurance Information Public Administration Retail Trade Real Estate and Rental and Leasing
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 12 A Differentiated Investment Portfolio Chicago Atlantic BDC, Inc. Offers a Significant Premium to Public BDCs and Traditional Leveraged Finance Chicago Atlantic BDC (Nasdaq: LIEN) generated a 16.1% weighted average portfolio yield on debt investments: » Investing in market niches underserved by traditional lenders drives pricing power, enables structural protections that enhance downside protection, and provides a completive moat against potential competition. » Attractive risk - adjusted returns driven by disciplined underwriting and focus on senior secured loans. » Complex regulatory and/or legal barriers deter traditional capital providers, creating compelling opportunities for experienced lenders. » Credit alpha driven by uncorrelated, idiosyncratic credit opportunities that typically have higher returns with lower leverage profiles compared to most traditional BDC’s. 1. As of 6/30/25; see page 10 & 19 for information regarding the calculation of Weighted Average Portfolio Yield on Debt Inve stm ents (“Portfolio Yield”). 2. Business Development Companies, Sector Outlook & Valuation Update, from Ladenburg Thalmann, as of 06/03/25. 3. ICE BoA US High Yield Index Effective Yield as of 6/30/25. 4. LSTA US Leveraged Loan Index as of 6/30/25. 7.3% 8.8% 11.8% 16.1% US High Yield Index US Leveraged Loan Yield Index Average Portfolio Yield of Public BDC's (Ladenburg Thalmann) LIEN Wtd. Average Portfolio Yield on Debt Investments 1 2 3 4
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 13 Target Borrowers Investment Sub - Strategies LIQUIDITY SOLUTIONS ESOTERIC & ASSET - BASED LENDING GROWTH & TECHNOLOGY CANNABIS LENDING » Financing is typically event driven » Companies that are pursuing a merger, acquisition, refinancing, dividend recap, or other strategic liquidity need » Companies that are showing strong cash flow performance with low leverage profiles » Companies that have multiple areas of value and liquidity in addition to the underlying business » Low debt to enterprise value » Industry agnostic » Structured credit and asset - based loans, receivables pools, and equipment » Companies that are showing strong cash flow performance with low leverage profiles, but the industries carry regulatory, reputational or other risks » Transactions tend to be attractively priced and have better than normal covenants and amortization due to complexity of the industry or situation » Low debt to asset values and/or enterprise values » Industry leaders and disruptive companies experiencing strong growth » Companies that have raised significant equity capital validating market value » Industry focus typically includes software, hardware, E - commerce and direct to consumer » Liquidity covenants that ensure such company has adequate cash runway » Low debt to enterprise value » Profitable or demonstrated path to near term profitability » Growth or EBITDA positive entities » Companies that require capital but do not want to dilute their equity » Companies that are showing strong cash flow performance with low leverage profiles » Transactions tend to be attractively priced and have better than normal covenants and amortization due to complexity of the industry » Low debt to enterprise value Although our primary investment focus has been in the cannabis industry, sub - strategies of our principal investment strategy may also consist of growth and technology companies, esoteric and asset - based lending opportunities, and companies in need of liquidity solutions . We are not required to have a minimum investment in any of these sub - strategies
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 14 The Cannabis Landscape in the U.S. Where We See Opportunities WE FOLLOW ALPHA INTO INDUSTRIES WITH LIMITED COMPETITION LACK OF TRADITIONAL FINANCING Banks generally don’t lend to firms in this industry, allowing higher interest rates, attractive collateral, and lender - friendly covenants. LOW CORRELATIONS TO TRADITIONAL MARKETS Medical cannabis behaves like pharmaceuticals, recreational cannabis behaves like tobacco and alcohol, both exhibiting low correlation with traditional markets. HIGH BARRIERS TO ENTRY Each state has unique investment characteristics, supply and demand dynamics, and legal frameworks, requiring sophisticated understanding of the industry and strong underwriting expertise. FOCUS ON LIMITED LICENSE STATES Limited license states have limited competition, lucrative license values, high wholesale prices, and less black - market presence.
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 15 The Cannabis Landscape in the U.S . A significant amount of positive change over the past 6 years 2019 2025 1 - MJBiz Factbook 2025 Q1 2. Statista x Legal in 41 states and the District of Columbia 1 x Medical use only: 17 states x Recreational/Medical use: 24 states & District of Columbia x Industry revenue estimated at $35B in 2025 1 x Legal in 35 states and the District of Columbia 1 x Medical use only: 25 states x Recreational/Medical use: 10 states & District of Columbia x Industry revenue a t $19.3B 2 No regulated use Legalized recreational and medical use Legalized medical use only
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 16 The Cannabis Industry Size of Opportunity and Growth Projections Chicago Atlantic makes no guarantee of future outcomes or targets. Numerous assumptions and variables underly the projected g row th of the Chicago Atlantic private credit opportunity by 2031. Refer to the Projections and Forward - Looking Statements disclosure at the beginning of this presentation. 1. MJBiz Factbook 2025; ($ in billions) . 2. S&P Capital IQ and Company Filings of the 20 largest cannabis companies (ranked by market capitalization); equity and debt fi gur es are as of 12/31/24. The U.S. cannabis industry is estimated to be $35B in top - line retail revenue in 2025 and is projected to grow to $69B by 2031 1 : Assuming the cannabis market enterprise value at 1x revenue, and a 35% debt to 65% equity capital structure 2 , the current value of the U.S. cannabis debt market can be estimated to be $12B . With the Chicago Atlantic platform’s closed cannabis loans to date of $2.1B, Chicago Atlantic estimates that it represents approximately 18% of the current U.S. cannabis debt market . With the projected industry size of $69B in retail sales in 6 years , and assuming we maintain our current debt market share of 18%, the Chicago Atlantic private credit opportunity could grow to over $4B . 2025 2026 2027 2028 2029 2030 2031 Retail Sales Estimates $35.3B $39.2B $43.9B $49.2B $55.6B $62.8B $69.1B
Appendix: Schedule of Investments
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 18 Schedule of Investments (as of June 30, 2025) % of Investment Value Investment Value PIK Rate Cash Spread/Coupon Prime/SOFR Floor Floating Reference Rate Fixed vs. Floating Maturity Date Security Type Portfolio Company 3.12% 9,589,710 n/a 5.75% n/a Prime Floating 6/30/2028 First Lien Senior Secured Loans Portfolio Company 1 1.05% 3,214,986 1.00% 6.50% 7.50% Prime Floating 6/13/2029 First Lien Senior Secured Loans Portfolio Company 2 0.09% 291,916 n/a n/a n/a n/a n/a n/a Warrants Portfolio Company 2 0.04% 113,066 n/a 5.75% 8.50% Prime Floating 10/30/2025 First Lien Senior Secured Loans Portfolio Company 3 1.11% 3,412,500 n/a 12.75% n/a n/a Fixed 7/16/2029 Senior Secured Notes Portfolio Company 4 1.08% 3,325,000 n/a 6.50% 3.75% SOFR Floating 9/22/2026 First Lien Senior Secured Loans Portfolio Company 5 0.17% 518,931 n/a 6.50% 3.75% SOFR Floating 9/22/2026 First Lien Senior Secured Loans Portfolio Company 5 0.69% 2,114,162 n/a 6.25% 3.75% SOFR Floating 9/22/2026 First Lien Senior Secured Loans Portfolio Company 5 0.65% 2,000,000 n/a 10.25% 4.00% SOFR Floating 7/28/2028 First Lien Senior Secured Loans Portfolio Company 6 2.65% 8,160,000 n/a 8.00% n/a n/a Fixed 12/15/2026 Senior Secured Notes Portfolio Company 7 1.82% 5,589,480 n/a 6.50% 8.00% Prime Floating 8/15/2027 First Lien Senior Secured Loans Portfolio Company 8 10.32% 31,745,000 n/a 8.75% 7.50% Prime Floating 5/3/2026 First Lien Senior Secured Loans Portfolio Company 9 4.46% 13,711,500 n/a 7.75% 8.50% Prime Floating 12/31/2026 First Lien Senior Secured Loans Portfolio Company 10 3.84% 11,820,068 5.00% 11.00% n/a n/a Fixed 12/31/2025 First Lien Senior Secured Loans Portfolio Company 11 3.22% 9,909,252 1.00% 12.00% n/a n/a Fixed 11/24/2028 First Lien Senior Secured Loans Portfolio Company 12 1.00% 3,080,000 n/a 15.00% n/a n/a Fixed 6/6/2026 First Lien Senior Secured Loans Portfolio Company 13 0.21% 651,317 n/a 9.85% 1.50% SOFR Floating 1/6/2027 First Lien Senior Secured Loans Portfolio Company 14 0.93% 2,860,223 n/a 8.50% 8.50% Prime Floating 12/3/2027 First Lien Senior Secured Loans Portfolio Company 15 0.33% 1,000,000 n/a 7.25% n/a Prime Floating 5/31/2026 First Lien Senior Secured Loans Portfolio Company 16 4.64% 14,265,374 n/a 6.50% 8.50% Prime Floating 3/28/2027 First Lien Senior Secured Loans Portfolio Company 17 1.53% 4,693,235 n/a 7.50% 8.00% Prime Floating 3/31/2026 First Lien Senior Secured Loans Portfolio Company 18 1.62% 4,968,908 1.50% 6.25% 4.25% SOFR Floating 4/30/2029 First Lien Senior Secured Loans Portfolio Company 19 0.01% 45,750 n/a n/a n/a n/a n/a n/a Warrants Portfolio Company 19 1.36% 4,170,612 2.00% 11.00% n/a n/a Fixed 11/28/2025 First Lien Senior Secured Loans Portfolio Company 20 1.14% 3,494,691 3.00% 1.75% 8.50% Prime Floating 11/1/2026 First Lien Senior Secured Loans Portfolio Company 21 0.61% 1,872,352 3.00% 1.75% 8.50% Prime Floating 11/1/2026 First Lien Senior Secured Loans Portfolio Company 21 0.98% 3,026,886 3.50% 7.50% 5.00% Prime Floating 8/4/2025 First Lien Senior Secured Loans Portfolio Company 22 7.15% 22,000,000 n/a 15.00% n/a n/a Fixed 10/2/2028 Senior Secured Notes Portfolio Company 23 3.82% 11,760,000 n/a 5.75% 7.50% Prime Floating 6/30/2028 First Lien Senior Secured Loans Portfolio Company 24 1.86% 5,732,700 n/a 7.25% 7.75% Prime Floating 3/24/2028 First Lien Senior Secured Loans Portfolio Company 25 12.42% 38,183,442 1.00% 8.50% 4.00% Prime Floating 5/26/2027 First Lien Senior Secured Loans Portfolio Company 26 0.92% 2,839,647 2.00% 7.00% 7.00% Prime Floating 7/29/2026 First Lien Senior Secured Loans Portfolio Company 27 0.97% 2,970,786 n/a 14.50% n/a n/a Fixed 3/13/2027 First Lien Senior Secured Loans Portfolio Company 28 1.00% 3,060,019 3.00% 4.00% 8.00% Prime Floating 11/4/2028 First Lien Senior Secured Loans Portfolio Company 29 0.00% - n/a n/a n/a n/a n/a n/a Warrants Portfolio Company 29 16.80% 51,656,405 n/a 6.50% 6.25% Prime Floating 10/30/2026 First Lien Senior Secured Loans Portfolio Company 30 1.72% 5,282,089 5.00% 13.80% n/a n/a Fixed 11/29/2027 Senior Secured Notes Portfolio Company 31 0.63% 1,926,747 6.00% 6.00% n/a n/a Fixed 5/31/2029 First Lien Senior Secured Loans Portfolio Company 32 0.16% 500,000 n/a n/a n/a n/a n/a n/a Preferred Stock Portfolio Company 32 0.02% 51,000 n/a n/a n/a n/a n/a n/a Warrants Portfolio Company 32 0.04% 135,000 n/a n/a n/a n/a n/a n/a Warrants Portfolio Company 32 3.82% 11,756,250 n/a 7.75% 4.00% SOFR Floating 9/18/2026 First Lien Senior Secured Loans Portfolio Company 33 100.00% $307,499,004 Total
CONFIDENTIAL | Chicago Atlantic BDC, Inc. 19 Pro Forma Portfolio Investment Portfolio Highlights: Footnote Legend Based on data as of 6/30/25, unless otherwise noted. Weighted average amounts are weighted by the fair market value of each r esp ective investment. 1. Weighted Average Portfolio Yield on Debt Investments (“Portfolio Yield”) is the weighted average of the annualized yield f or each debt investment in the portfolio weighted by the fair value of each debt investment as of 6/30/25. The yield for each debt investment is calculated by dividing (a) the sum of ( i ) the stated annual cash interest rate of the debt investment as of 6/30/25, (ii) the stated annual payment - in - kind interest rat e, if any, of the debt investment as of 6/30/25, (iii) any additional recurring fees, (iv) the difference between the par value and the fair value of the debt investment, expressed as a percentage of the par value of th e debt investment, and annualized based on the remaining term of the debt investment as of 6/30/25, and (v) the exit fee of the debt investment, if any, expres sed as a percentage of the par value of the debt investment and annualized based on the remaining term of the debt investment as of 6/30/25, by (b) the fair value of the debt investment, expressed as a percentage of the par valu e o f the debt investment. The Portfolio Yield calculation does not reflect any prepayment penalties or early payoffs with respect to the debt investments. The Portfolio Yield is gross of expenses and excludes cash and equity holdings. Th e Portfolio Yield would be lower if the calculation reflected expenses and cash holdings. The Portfolio Yield does not represent actual investment returns to the Company’s stockholders and the Company may not actually r eal ize the foregoing yield of any specific debt investment, including if the remaining term of the debt investment is less than a year. 2. Represents the percentage of total annual interest expected to be received in kind instead of in cash. 3. Amounts were derived from the portfolio company financial statements used in connection with determining the investment va lua tions as of 6/30/25, have not been independently verified by the Company, and may reflect a normalized or adjusted amount. Accordingly, the Company makes no representation or warranty in respect of this information. 4. Excluded from the data is information in respect of portfolio companies with negative or de minimis EBITDA, or where EBITD A m ay not be the appropriate measure of credit risk.