August 18, 2025
Rescheduling Could Spark Cannabis M&A and Lending Growth – The Dales Report
On the latest Trade To Black podcast, host Shadd Dales and co-host Anthony Varrell connect with Peter Sack, Managing Partner of Chicago Atlantic, to break down Chicago Atlantic BDC’s (NASDAQ:LIEN) Q2 2025 results and what’s ahead for cannabis lending.
Chicago Atlantic BDC Inc. posted $7.7 million in net investment income, or $0.34 earnings per share, matching its quarterly dividend. The company holds $125 million in cash, with all borrowers current—an impressive feat given challenging industry conditions. Peter attributed this stability to Chicago Atlantic’s investment strategy, which emphasizes low leverage, lending against existing cash flows, and diversifying across multiple markets.
This episode explores what’s driving those results — and why they matter for investors. It also digs into how cannabis rescheduling could bring a potential surge in market activity. Rescheduling could spark acquisitions, refinancings, and expansions that would create more lending opportunities. Both the company’s business development corporation (BDC) and REIT sides stand to benefit.
Peter walks us through the fundamentals: fully covered dividends, interest rate floors to protect against declining interest rates, and a portfolio that is fully performing and current on all interest and principal payments as of June 30, 2025. The discussion also covers deal flow, including the $780 million pipeline across cannabis and non-cannabis lending, portfolio concentration risks, and how Chicago Atlantic decides when to tap its $100 million credit facility.
IMPORTANT INFORMATION
This material is provided for the information purposes only and neither it nor its contents may be copied, reproduced, republished, posted, transmitted, distributed, disseminated, or disclosed, in whole or in part to any other person in any way without the prior consent of Chicago Atlantic Advisers, LLC (“Chicago Atlantic”). By accepting the materials, you agree and acknowledge that your compliance is a material inducement to our providing these materials to you.
This material does not constitute nor should be construed as an offer to sell or a solicitation of an offer to buy any securities, investments, or products in any jurisdiction, nor do they contain or constitute investment advice or recommendations, or the offer to provide any investment advice or service. Chicago Atlantic and its affiliates make no representation or warranty, either express or implied as to the accuracy, completeness, or reliability of the information or opinions contained in this presentation.
Certain information contained herein is based on or derived from information provided by independent third-party sources. Chicago Atlantic has not independently verified any of such information.
All investment strategies involve risks, there can be no assurance that the investment objectives of any particular strategy will be met in any particular circumstances. The contents of this document are not legal, tax, accounting, or investment advice or a recommendation. You should consult your own counsel, and tax and financial advisors as to legal and related matters concerning any information described herein. Neither the U.S. Securities and Exchange Commission nor any U.S. state or non-U.S. securities commission has reviewed or passed upon the accuracy or adequacy of these materials. Any representation to the contrary is unlawful.