Chicago Atlantic BDC (LIEN) investor relations material

Executive summary

• Focuses on senior secured lending to privately held companies in niche and underserved markets, especially the cannabis sector and lower middle market, aiming for attractive returns and downside protection.

• Closed over $3.3B in loans since inception, with $333.3M in total portfolio investment value as of 12/31/2025, across 39 companies.

• Net investment income was $8.3M ($0.36 per share) for Q4 2025 and $33.1M ($1.45 per share) for the year, with a yield to book value of 2.7% for Q4 and 11% for the year.

• Maintains zero non-accrual loans, high senior secured loan exposure (99.5%-100%), and leverage below industry averages.

• Recent M&A activity and positive federal cannabis policy momentum have expanded the investment pipeline.

Financial highlights

• Gross investment income for Q4 2025 was $14.2M, down from $15.1M in Q3; full-year gross investment income was $54.3M.

• Net investment income for Q4 was $8.3M ($0.36 per share), down from $9.5M ($0.42 per share) in Q3.

• Net asset value per share was $13.30 at year-end, up from $13.27 in Q3; total net assets were $303.4M with 22.8M shares outstanding.

• Declared a $0.34 dividend for the sixth consecutive quarter, totaling $1.36 per share for the year.

• Portfolio fair value grew steadily throughout 2025, reaching $333.3M at year-end.

Outlook and guidance

• Pipeline for potential debt transactions grew to over $732M, up from $600M last quarter.

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

• Strategy assumes no regulatory change, focusing on high-yield, niche markets with strong credit metrics.

• Anticipates continued growth in the cannabis industry, with U.S. retail sales projected to reach $69B by 2031.