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.