Chicago Atlantic BDC, Inc. Q1 FY2025 earnings call

• Uniquely positioned among BDCs focusing on and lending to cannabis companies and underserved end markets. • Weighted average yield on debt investments as of March 31st was 16.6% vs BDC average of 12.1%. • All debt investments are senior secured, unlike other BDCs with significant second lien/subordinated debt/equity. • Weighted average secured net leverage of portfolio companies is 1.4x, interest coverage ratio 3.4x, portfolio entirely unlevered vs BDC average 1.1x. • No non-accruals vs industry average 3.9%. • Originated $52.8 million in gross fundings since Oct 1, 2024; Q1 2025 committed $32.3 million, funded $20.8 million. • Announced $0.34 dividend, third consecutive quarter at that rate; intent to grow dividends as platform scales. • Focus on proven operators, strong markets, etc., for deployment. • Disciplined underwriting approach, selective with borrowers, building durable investment portfolios.

The company's debt investments have a weighted average yield of 16.6% as of March 31st, with all debt investments being senior secured. In Q1 2025, they committed $32.3 million and funded $20.8 million. The portfolio consists of 31 companies, with 21% of the portfolio invested outside of cannabis across multiple sectors. The gross weighted average yield of company debt investment is approximately 16.6%, and there are no non-accruals. The total amount of originations in Q1 2025 was in line with expectations, but back-end timing affected gross investment income.

• Announced a $0.34 dividend, third consecutive quarter at that rate; last four quarters total dividends $1.27. • Intent to grow dividend component as platform scales. • Hopes for increased total returns to shareholders with more settled equity and credit markets. • Expect to continue ramping deployment with focus on proven operators, etc.

• Forward-looking statements involve known and unknown risks/uncertainties that could cause actual results to differ. • Timing of federal regulatory changes is unpredictable; continue underwriting based on borrowers' cash flow and collateral profiles in current environment. • Industry uncertainty, but company views itself as a constant borrowers and investors can count on.

Q: General macro question about industry outlook and deploying $100 million when others are more cautious.

A: Focused on 40 individual US states, not broader US cannabis industry; viewed US cannabis as 40 states with own dynamics; been building relationships and will deploy disciplinedly.

Q: Pipeline nuance between cannabis and non-cannabis.

A: No significant difference; change in deployments in Q1 is ordinary fluctuations, not deliberate change or market-driven.

Q: Flexibility to increase $100 million facility.

A: Think there's room to grow senior secured credit facility in disciplined manner with pipeline.

Q: Dividend guidance.

A: Don't provide dividend guidance, but BDCs required to distribute nearly all income every year