Chicago Atlantic BDC, Inc. Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Chicago Atlantic BDC (NASDAQ: LIEN) reported Q2 2026 total investment income of $14.0 million and net investment income of $7.7 million, or $0.34 per share, with net assets from operations increasing by $6.1 million, or $0.27 per share.
As of June 30, 2026, total assets were $344.0 million and net asset value per share was $13.26. The investment portfolio stood at $334.8 million across 37 companies, with a weighted average yield on debt investments of 16.0% and no loans on non-accrual status.
LIEN had $73.9 million of liquidity and a debt-to-equity ratio of 0.09x. The board declared a Q3 2026 dividend of $0.34 per share, matching the Q2 dividend and marking the seventh consecutive quarter at that level. The company also filed a $500 million shelf registration statement and agreed to merge with Chicago Atlantic Real Estate Finance (NASDAQ: REFI) in an NAV-for-NAV stock transaction expected, subject to approvals and conditions, to close in Q4 2026.
Positive
- Net investment income of $7.7 million ($0.34 per share) in Q2 2026
- Debt portfolio yield of 16.0% with 0.0% non-accrual loans at June 30, 2026
- Low leverage with $27.0 million borrowings and 0.09x debt-to-equity ratio
- Liquidity of $73.9 million at June 30, 2026
- Q3 2026 dividend of $0.34 per share; seventh consecutive quarter at this rate
- $500 million shelf registration filed to provide capital markets access and flexibility
- Proposed merger with REFI could create a larger combined BDC, subject to approvals
Negative
- Total investment income declined to $14.0 million from $16.7 million quarter-over-quarter
- Net investment income decreased from $10.0 million to $7.7 million quarter-over-quarter
- Total assets fell from $373.1 million to $344.0 million, reflecting net repayments
- Portfolio size decreased to $334.8 million and 37 companies from $364.0 million and 40
- Available liquidity declined to approximately $47.2 million by August 12, 2026 as borrowings increased
- Merger with REFI is subject to multiple stockholder and regulatory approvals and may not close as expected
News Explained
If completed, former REFI holders are estimated to receive 50.5% of LIEN, making ownership dilution the key unresolved change.
LIEN has entered a merger agreement with REFI, but the transaction is not closed; if completed, REFI stockholders would receive LIEN common shares, with the March 31 estimate implying former REFI holders would own
The exchange is based on the companies’ NAV per share shortly before closing, so
The
As of
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Chicago Atlantic BDC, Inc. (“LIEN” or the “Company”) (NASDAQ: LIEN), a specialty finance company that has elected to be regulated as a business development company, today announced its financial results for the second quarter ended June 30, 2026.
Operating Highlights
| For the Three Months Ended | ||||||||||||
| (Dollar amounts in millions, except per share data)* | June 30, 2026 | March 31, 2026 | ||||||||||
| Total Amount | Per Share | Total Amount | Per Share | |||||||||
| Total investment income | ||||||||||||
| Net investment income | ||||||||||||
| Net change in unrealized gains (losses) | ||||||||||||
| Net increase in net assets resulting from operations | ||||||||||||
*totals may not foot due to rounding.
Peter Sack, Chief Executive Officer of the Company, commented, “The second quarter reflected the continued strength of our portfolio and disciplined underwriting approach. The decline in portfolio fair value was driven primarily by repayments and amortization activity rather than credit deterioration or valuation markdowns. With no investments on non-accrual status, steady portfolio risk ratings, and a
Mr. Sack continued, “We ended the quarter with
| Balance Sheet Highlights | As of | |||||
| (Dollar amounts in millions, except per share data) | June 30, 2026 | March 31, 2026 | ||||
| Total assets | ||||||
| Total net assets | ||||||
| Net asset value per share | ||||||
| Outstanding borrowings | ||||||
| Debt-to-equity ratio | 0.09x | 0.18x | ||||
Portfolio Activity
| For the Three Months Ended | ||||||
| (Dollar amounts in millions) | June 30, 2026 | March 31, 2026 | ||||
| Investment fundings (portfolio companies / principal) | 1 / | 7 / | ||||
| Repayments / amortization / refinancing | ||||||
| Portfolio Information: | ||||||
| Total investment portfolio at fair value | ||||||
| Number of portfolio companies | 37 | 40 | ||||
| Weighted average yield on debt investments | ||||||
| Loans on non-accrual status (% of portfolio at fair value) | ||||||
As of June 30, 2026, the Company’s investment portfolio had an aggregate fair value of approximately
Subsequent to quarter end, one position of
Liquidity and Capital Resources
As of June 30, 2026, the Company had
On May 11, 2026, the Company filed a shelf registration statement with the Securities and Exchange Commission (the “SEC”), which once declared effective, will allow the Company to issue up to
Dividend
On August 10, 2026, the Company's Board of Directors declared a third quarter 2026 dividend of
Recent Developments
On June 17, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Chicago Atlantic Real Estate Finance, Inc. ("REFI") (NASDAQ: REFI), an affiliated company that has elected to be taxed as a real estate investment trust and is externally managed by an affiliate of the Company's investment adviser, pursuant to which REFI will merge with and into the Company, with the Company continuing as the surviving company (the "Merger"). Prior to the Merger, REFI will elect to be regulated as a business development company under the Investment Company Act of 1940, as amended (the “1940 Act”). At closing, REFI’s stockholders will receive a number of shares of the Company's common stock determined based on the ratio (the “Exchange Ratio”) of REFI's net asset value ("NAV") per share, as adjusted in accordance with the Merger Agreement, to the Company's NAV per share, similarly adjusted, in each case as determined shortly prior to closing. Based on the respective NAVs of REFI and the Company as of March 31, 2026, and without giving effect to any other changes in the inputs to the Exchange Ratio occurring after March 31, 2026, former REFI stockholders would be expected to own approximately
Live Conference Call and Webcast
The Company will host a conference call and live audio webcast, both open for the general public to hear, to discuss the Company's second quarter 2026 financial results at 9:00 a.m. ET on Thursday, August 13, 2026. The number to access the conference call is 833-630-1956 (international callers: 412-317-1837). The live audio webcast of the call will also be available at the following link https://edge.media-server.com/mmc/p/a3rmvk74.
A replay of the call will be available at investors.chicagoatlanticbdc.com by the end of day on August 13, 2026.
About Chicago Atlantic BDC, Inc.
The Company is a specialty finance company that has elected to be regulated as a business development company under the 1940 Act, as amended, and has elected to be treated as a regulated investment company for U.S. federal income tax purposes. The Company’s investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies. The Company is managed by Chicago Atlantic BDC Advisers, LLC (the “Adviser”), an investment manager focused on the cannabis industry and other niche or underfollowed sectors. For more information, please visit chicagoatlanticbdc.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views and projections with respect to, among other things, future events and financial performance, including statements regarding the proposed Merger with REFI and its expected timing and effects, the expected pro forma ownership of former REFI stockholders in LIEN following the Merger, the expected implementation and effects of federal rescheduling of medical cannabis, the Company’s dividend expectations, and the Company’s future operations and strategies. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” “future” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including, without limitation: (i) the risk that the proposed Merger may not be completed on the anticipated terms or timing, or at all; (ii) the failure to obtain the required stockholder approvals of REFI or LIEN, including approval of REFI’s election to be regulated as a business development company and approval of REFI’s investment advisory agreement; (iii) the failure to satisfy other conditions to closing, including regulatory approvals and third-party consents; (iv) the effect of the announcement or pendency of the Merger on the Company’s business, operating results, and relationships with borrowers, employees and other counterparties; (v) risks that the Merger may divert management’s attention from the Company’s ongoing business; (vi) the outcome of any legal proceedings that may be instituted against REFI or LIEN related to the Merger; (vii) the amount of costs, fees and expenses related to the Merger; (viii) developments in the cannabis industry, including federal, state and local legal and regulatory changes and the implementation of federal rescheduling; (ix) changes in interest rates, credit spreads and macroeconomic conditions; and (x) the other risks identified in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q, and in the registration statement on Form N-14 filed by LIEN with the SEC on July 31, 2026, including the joint proxy statement/prospectus contained therein. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect us. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
No Offer or Solicitation
This press release is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”), or in a transaction exempt from the registration requirements of the Securities Act.
Additional Information and Where to Find It
This communication includes information relating to the Merger of REFI with and into the Company, along with related proposals for which stockholder approval will be sought, pursuant to the Merger Agreement. The Merger Agreement was unanimously approved by the Boards of Directors of both the Company and REFI, each acting on the unanimous recommendation of its special committee of independent directors (each, a “Special Committee”). In connection with the proposals, on July 31, 2026, the Company filed relevant materials with the SEC, including a registration statement on Form N-14, which has not yet been declared effective, which includes a joint proxy statement of the Company and REFI and a prospectus of the Company (the “Proxy Statement/Prospectus”). This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act. STOCKHOLDERS OF THE COMPANY AND REFI ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS, AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, REFI, THE MERGER AND THE PROPOSALS. Investors and security holders will be able to obtain the documents filed with the SEC free of charge at the SEC’s website, www.sec.gov, or from each company’s investor relations website at www.investors.chicagoatlanticbdc.com (the Company) and www.investors.refi.reit (REFI), or by directing a request to LIEN@chicagoatlantic.com (the Company) or IR@REFI.reit (REFI).
Participants in the Solicitation
The Company, REFI, the Adviser, Chicago Atlantic REIT Manager, LLC, the external manager of REFI, and their respective directors, officers, members, managers, partners, employees and affiliates, and other persons may be deemed to be participants in the solicitation of proxies from the stockholders of the Company and REFI in connection with the Merger and the related proposals. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the stockholders of the Company and REFI in connection with the Merger and the related proposals, including a description of their direct or indirect interests, by security holdings or otherwise, will be included in the Proxy Statement/Prospectus and other relevant materials to be filed with the SEC when they become available. Additional information regarding the ownership of securities of the Company and REFI by their respective directors and executive officers is included in their SEC filings on Forms 3, 4 and 5, which can be found through the SEC’s website at www.sec.gov. Information about the directors and executive officers of the Company is set forth in the Company’s proxy statement for its 2026 annual meeting of stockholders, filed with the SEC on April 30, 2026, and in LIEN’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 19, 2026. Information about the directors and executive officers of REFI is set forth in REFI’s proxy statement for its 2026 annual meeting of stockholders, filed with the SEC on April 23, 2026, and in REFI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 12, 2026. Each of these documents is available free of charge at the SEC’s website, www.sec.gov, or from the Company’s or REFI’s investor relations website, as applicable.
Contact
Tripp Sullivan
Lisa Kampf
SCR Partners
LIEN@chicagoatlantic.com
| CHICAGO ATLANTIC BDC, INC. | ||||||||
| Statements of Assets and Liabilities | ||||||||
| June 30, 2026 | March 31, 2026 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| ASSETS | ||||||||
| Investments at fair value: | ||||||||
| Non-controlled/non-affiliate investments | $ | 334,833,992 | $ | 346,596,232 | ||||
| Non-controlled affiliate investments | - | 17,370,481 | ||||||
| Total investments at fair value (amortized cost of | 334,833,992 | 363,966,713 | ||||||
| Interest receivable | 3,588,157 | 4,358,743 | ||||||
| Prepaid expenses and other assets | 2,605,281 | 1,305,750 | ||||||
| Due from affiliates | 2,008,432 | 152,958 | ||||||
| Cash | 925,534 | 3,346,316 | ||||||
| Total assets | $ | 343,961,396 | $ | 373,130,480 | ||||
| LIABILITIES | ||||||||
| Revolving line of credit | $ | 27,000,000 | $ | 54,500,000 | ||||
| Distributions payable | 7,759,001 | 7,759,001 | ||||||
| Income-based incentive fees payable | 1,920,905 | 2,457,290 | ||||||
| Other payables | 1,677,560 | 876,266 | ||||||
| Management fee payable | 1,555,022 | 1,529,360 | ||||||
| Due to affiliates | 1,441,236 | 1,359,256 | ||||||
| Professional fees payable | 118,133 | 464,846 | ||||||
| Total liabilities | $ | 41,471,857 | $ | 68,946,019 | ||||
| NET ASSETS | ||||||||
| Common stock, | $ | 228,206 | $ | 228,206 | ||||
| Additional paid-in-capital | 303,079,082 | 303,079,082 | ||||||
| Distributable earnings | (817,749 | ) | 877,173 | |||||
| Total net assets | $ | 302,489,539 | $ | 304,184,461 | ||||
| NET ASSET VALUE PER SHARE | $ | 13.26 | $ | 13.33 | ||||
| CHICAGO ATLANTIC BDC, INC. | ||||||||
| Statements of Operations | ||||||||
| For the Three Months Ended | ||||||||
| June 30, 2026 | March 31, 2026 | |||||||
| INVESTMENT INCOME | ||||||||
| Non-controlled/non-affiliate investment income | ||||||||
| Interest income | $ | 12,333,209 | $ | 13,780,772 | ||||
| Fee income | 659,411 | 2,096,857 | ||||||
| Total investment income from non-controlled/non-affiliate investments | 12,992,620 | 15,877,629 | ||||||
| Non-controlled affiliate investment income | ||||||||
| Interest income | 955,512 | 802,644 | ||||||
| Fee income | 22,500 | 22,500 | ||||||
| Total investment income from non-controlled affiliate investments | 978,012 | 825,144 | ||||||
| Total investment income | 13,970,632 | 16,702,773 | ||||||
| EXPENSES | ||||||||
| Income-based incentive fees | 1,920,903 | 2,457,289 | ||||||
| Management fee | 1,555,022 | 1,529,359 | ||||||
| General and administrative expenses | 1,142,752 | 1,212,784 | ||||||
| Interest expense | 1,000,939 | 1,024,542 | ||||||
| Professional fees | 210,244 | 198,238 | ||||||
| Audit expense | 153,750 | 153,750 | ||||||
| Other expenses | 145,109 | 146,106 | ||||||
| Sub-administrator fees | 115,766 | 133,410 | ||||||
| Legal expenses | 72,954 | 45,750 | ||||||
| Excise tax expense | - | 2,730 | ||||||
| Capital gains incentive fees | - | (163,473 | ) | |||||
| Total expenses | 6,317,439 | 6,740,485 | ||||||
| NET INVESTMENT INCOME (LOSS) | 7,653,193 | 9,962,288 | ||||||
| NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | ||||||||
| Non-controlled non-affiliate investments | (528,944 | ) | (2,487,070 | ) | ||||
| Non-controlled affiliate investments | (1,060,170 | ) | 1,060,170 | |||||
| Net change in unrealized appreciation (depreciation) on investments | (1,589,114 | ) | (1,426,900 | ) | ||||
| Net realized and unrealized gains (losses) | (1,589,114 | ) | (1,426,900 | ) | ||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 6,064,079 | $ | 8,535,388 | ||||
| NET INVESTMENT INCOME (LOSS) PER SHARE - BASIC AND DILUTED | $ | 0.34 | $ | 0.44 | ||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC AND DILUTED | $ | 0.27 | $ | 0.37 | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED | 22,820,590 | 22,820,590 | ||||||
