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Chicago Atlantic BDC Inc. (LIEN-2.31%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's structure as an externally managed, closed-end, non-diversified management investment company, regulated as a business development company (BDC) under the Investment Company Act of 1940.
The company completed its initial public offering on February 8, 2022, raising approximately $83.3 million in net proceeds. As of March 28, 2025, Chicago Atlantic BDC had 22,820,386 shares of common stock outstanding.
Chicago Atlantic BDC focuses on investing in companies within the cannabis industry, as well as in growth and technology companies, esoteric and asset-based lending opportunities, and liquidity solutions.
The report highlights a Loan Portfolio Acquisition completed on October 1, 2024, in which the company acquired a portfolio of loans from Chicago Atlantic Loan Portfolio, LLC in exchange for newly issued shares of common stock.
On October 1, 2024, the company also entered into a joint venture with Chicago Atlantic BDC Advisers, LLC, which resulted in a new investment advisory agreement.
The company's investment strategy includes investing primarily in secured debt, unsecured debt, equity warrants, and direct equity investments in privately held businesses.
The filing outlines the risks associated with investing in the cannabis industry, including regulatory risks, market volatility, and the potential for changes in federal law.
Chicago Atlantic BDC operates as a regulated investment company (RIC) for U.S. federal income tax purposes, intending to qualify annually to be treated as a RIC under Subchapter M of the Internal Revenue Code.
The company reports that as of December 31, 2024, Chicago Atlantic managed $1.9 billion in capital under management, focusing on direct lending in the cannabis industry and other niche markets.
The filing includes a discussion of the company's financial performance, investment strategy, risk factors, and management's discussion and analysis of financial condition and results of operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Chicago Atlantic BDC Inc. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.