Chicago Atlantic BDC (LIEN) investor relations material

Executive summary

• Net investment income for Q2 2026 was $7.7 million ($0.34 per share), with a dividend of $0.34 per share for the eighth consecutive quarter.

• Portfolio fair value at quarter end was $334.8 million, diversified across 37 companies, with 74% in cannabis and 26% in non-cannabis sectors.

• Credit quality remained strong, with no non-accruals and a fully senior secured debt portfolio.

• Announced a merger with Chicago Atlantic Real Estate Finance (REFI), expected to close in Q4 2026, creating a $771M+ portfolio BDC.

• Focus remains on senior secured lending to cannabis and other underserved sectors, leveraging a proprietary origination network.

Financial highlights

• Gross investment income for Q2 2026 was $14.0 million, down from $16.7 million in Q1 2026.

• Net investment income was $7.7 million ($0.34 per share), down from $10.0 million ($0.44 per share) in Q1 2026.

• Net assets at June 30, 2026, were $302.5 million; NAV per share was $13.26.

• Total expenses were $6.3 million, down from $6.7 million in Q1 2026, driven by lower incentive fees.

• Net unrealized loss of $1.6 million, primarily from reversal of prior gains on loans paid off at par.

Outlook and guidance

• Merger with REFI anticipated to close in Q4 2026, subject to regulatory and shareholder approvals.

• Management expects increased origination activity, supported by a strong pipeline and robust liquidity.

• Regulatory reforms, including federal rescheduling of medical cannabis, are expected to improve revenue visibility and lending opportunities.

• No assumptions of regulatory changes are included in projections; underwriting remains disciplined.