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Imagine JPMorgan Chase, but exclusively focused on providing senior secured loans to state-licensed cannabis businesses.

Think of Wells Fargo, but specialized in real estate and asset-backed lending for the state-licensed cannabis industry.

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• Senior Secured Term Loans: Provides direct, long-term debt financing to state-licensed cannabis operators, primarily secured by real estate and other assets.
• Bridge Loans: Offers short-term debt financing solutions to cannabis businesses for immediate capital needs or to bridge gaps until longer-term financing is secured.
• Construction Loans: Funds the development, expansion, or renovation of facilities for cannabis cultivation, processing, and retail operations.

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Chicago Atlantic Real Estate Finance (REFI) sells primarily to other companies. Its major customers are **state-licensed cannabis operators** across various states in the United States.

Due to the nature of their business as a specialized lender to the cannabis industry (which faces unique regulatory and financing challenges, particularly at the federal level), REFI's loan portfolio is typically diversified across numerous borrowers. These borrowers are predominantly **private companies** engaged in various aspects of the cannabis supply chain, including cultivation, processing, and dispensing of cannabis products.

While REFI lends to companies, specific names of its "major" customer companies and their symbols (especially public ones) are generally not disclosed publicly by REFI. This is common for lenders with a diversified loan portfolio, as borrower privacy is maintained, and many cannabis operators are private entities that rely on specialist lenders like REFI for capital due to restricted access to traditional banking services.

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The major suppliers for Chicago Atlantic Real Estate Finance (REFI) are:

• Axos Financial, Inc. (AX)

• KeyCorp (KEY)

• JPMorgan Chase & Co. (JPM)

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Tony Cappell Co-Chief Executive Officer

Tony Cappell is a Partner at Chicago Atlantic and Co-CEO of Chicago Atlantic Real Estate Finance, Inc. With over 15 years of experience in specialty finance, he has completed over 150 deals totaling more than $5 billion in credit. Prior to founding Chicago Atlantic, Mr. Cappell was a Managing Director and Head of Underwriting at Stonegate Capital, a private credit investment firm focused on lower middle market businesses and emerging brands, where he was responsible for credit, underwriting, and the growth strategy of the loan portfolio. He also served as a Senior Underwriter at First Midwest Bank and Gibraltar Business Capital, working on various specialty finance transactions. Mr. Cappell began his career at Wells Fargo Capital Finance. He holds a BA from the University of Wisconsin—Milwaukee and an MBA from The University of Chicago Booth School of Business.

Phil Silverman Chief Financial Officer

Phil Silverman serves as the Chief Financial Officer of Chicago Atlantic Real Estate Finance, Inc. He is a licensed Certified Public Accountant with over 10 years of finance and accounting experience, specializing in financial reporting, operations, and internal controls for investment management firms. Mr. Silverman was appointed Chief Financial Officer in March 2024, having previously served as Interim Chief Financial Officer from September 2022. Before joining Chicago Atlantic, he spent over eight years with BDO USA, LLP, where he most recently held the position of Senior Manager in the Financial Services and Private Equity group. In this role, he was responsible for the end-to-end execution of audits for private equity and venture capital funds, small business investment companies, business development companies, and other asset managers.

John Mazarakis Executive Chairman

John Mazarakis is a Founding Partner at Chicago Atlantic Group and has served as Executive Chairman of Chicago Atlantic Real Estate Finance, Inc. since its inception. Over the past two decades, he has launched successful companies in real estate, retail, hospitality, and food logistics, growing an initial investment of $50,000 to over $75 million in value. He has built, owned, and operated more than 35 restaurants with over 1,200 employees, established a real estate portfolio of over 30 properties, and developed over 1 million square feet of commercial real estate. Mr. Mazarakis also acquired a small distribution company with $12 million in annual sales and expanded it to over $90 million in less than two years. He has invested in and served as an advisor to multiple successful startups. Mr. Mazarakis holds an MBA from The University of Chicago Booth School of Business and a Bachelor's Degree in Economics from the University of Delaware.

Peter Sack Co-Chief Executive Officer

Peter Sack is a Managing Partner at Chicago Atlantic and serves as Co-CEO of Chicago Atlantic Real Estate Finance, Inc. He is a credit investor and portfolio manager with experience investing across various capital structures. Prior to joining Chicago Atlantic, Mr. Sack was a Principal at BC Partners Credit from July 2018 to June 2021, where he focused on sourcing and underwriting across the firm's opportunistic and senior lending strategies in diverse industries. He also managed the portfolio of BC Partners Lending Corporation, a private business development company. Earlier in his career, from July 2012 to June 2016, Mr. Sack was an Associate at Atlas Holdings LLC, a private equity firm that supports distressed manufacturing and distribution companies globally. He holds a BA in East Asian Studies from Yale University, an MBA from the Wharton School of the University of Pennsylvania, and was a Fulbright Scholar at Sun Yat-sen University China.

Andreas Bodmeier President

Andreas Bodmeier is a Partner of Chicago Atlantic and serves as President of Chicago Atlantic Real Estate Finance, Inc. He has over 15 years of experience at the intersection of finance and analytics. Prior to Chicago Atlantic, Mr. Bodmeier co-founded a boutique technology and consulting firm focused on FX and commodity risk management for multinational corporations, as well as advising on capital structure decisions and investor relations. He also co-founded an SEC-registered online investment adviser for retirement accounts. Mr. Bodmeier has consulted for hedge funds, proprietary trading firms, commercial and consumer lenders, and pharmaceutical companies. His academic research at The University of Chicago Booth School of Business focused on capital market anomalies, portfolio allocation, and risk management. He holds a Ph.D. in Finance and an MBA from The University of Chicago Booth School of Business, a Master of Science in Statistics from Humboldt-Universität zu Berlin, and Bachelor of Science degrees in Mathematics, Physics, and Business Economics from Freie Universität Berlin and FernUniversität in Hagen.

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Key Business Risks for Chicago Atlantic Real Estate Finance (REFI)

1. Dependence on the Cannabis Industry and Regulatory Uncertainty: Chicago Atlantic Real Estate Finance primarily lends to state-licensed cannabis operators, making it highly exposed to the unique legal and regulatory landscape surrounding cannabis in the United States. While state-level legalization has created demand for financing, federal prohibition limits conventional banking access for these businesses, giving REFI a specialized, less competitive market. However, this also means REFI's business is vulnerable to potential shifts in federal cannabis policy, such as rescheduling or full legalization, which could introduce greater competition from traditional lenders and potentially erode REFI's loan yields and margins.
2. Dividend Coverage and Earnings Decline: REFI's substantial dividend yield has been noted as not being adequately covered by its earnings or free cash flows. Earnings are projected to decline by an average of 1.2% per year over the next three years, with distributable earnings covering the dividend by only 98% in a recent period, potentially putting the current dividend at risk. Macroeconomic challenges, increased interest expenses, and potentially lower loan origination volumes could further pressure dividend coverage.
3. Loan Portfolio Concentration: A significant portion of REFI's loan portfolio is concentrated among a small number of borrowers. The top 5 loans constitute 35.7% of the total portfolio, and the top 10 loans account for 61.3% of the principal outstanding. This high concentration means that the default or underperformance of even a few large loans could have a material adverse impact on the company's financial performance and stability.

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The ongoing legislative efforts towards federal cannabis reform, such as the potential passage of the SAFE Banking Act or broader federal legalization, pose a clear emerging threat. Such reforms would likely enable traditional financial institutions to serve the cannabis industry without federal penalty, leading to a significant increase in competition for Chicago Atlantic Real Estate Finance. This influx of traditional capital would likely drive down interest rates on cannabis loans and could diminish REFI's current competitive advantage, which is largely based on operating in a market underserved by traditional lenders due to federal prohibition.

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Chicago Atlantic Real Estate Finance (REFI) operates as a commercial mortgage real estate investment trust (mREIT) primarily focused on originating, structuring, and investing in senior secured loans to state-licensed cannabis operators or property owners in limited-license states across the United States.

The addressable markets for Chicago Atlantic Real Estate Finance's main products and services are:

• U.S. Cannabis Industry Capital Needs: The U.S. cannabis industry is projected to require between $65.6 billion and $130.7 billion in sustainable growth capital over the next decade to support new businesses and refinance existing ones. This represents the overall demand for financing that companies like REFI help to meet.
• U.S. Cannabis Real Estate Asset Class: The cannabis industry represents approximately a $50 billion real estate asset class in the United States. REFI's loans are secured by commercial real estate properties within this sector.

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Here are 3-5 expected drivers of future revenue growth for Chicago Atlantic Real Estate Finance (REFI) over the next 2-3 years:

1. Expansion of Cannabis Market Financing: REFI's primary focus is on real estate credit investments in the cannabis space. The demand for financing in this market is projected to continue rising due to ongoing and future state-level legalization of cannabis for recreational and medical use, alongside increased consumer adoption. These trends necessitate significant capital expenditures by cannabis operators, which REFI aims to finance. This expanding market creates a robust environment for new loan originations.
2. Strong Loan Origination Pipeline: The company has consistently highlighted a strong pipeline of new loan opportunities. As of November 4, 2025, Chicago Atlantic reported a pipeline of over $415 million in new opportunities. This active origination strategy, coupled with a disciplined "credit-first" underwriting process, is expected to drive net growth in the loan portfolio, thereby increasing interest income.
3. Limited Competition in the Cannabis Lending Space: The federal prohibition on cannabis, while posing certain challenges, simultaneously creates a limited competition environment for commercial and financial activities within the sector. This reduced competitive landscape positions Chicago Atlantic to be a lender of choice to leading cannabis industry operators, potentially allowing for more favorable loan terms and higher yields, contributing to revenue growth.
4. Strategic Management of Interest Rate Environment: REFI has structured its loan portfolio to mitigate the impact of potential interest rate adjustments. Approximately 86% of its current loans are structured with interest rate floors greater than or equal to the prevailing Prime rate, or are fixed-rate. This insulation from declining interest rates helps to protect net interest income and maintain revenue stability, while also benefiting from a diversified portfolio of 36.7% fixed-rate and 63.3% floating-rate loans.

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Share Repurchases

There is no information available regarding specific company share repurchase programs authorized or executed by Chicago Atlantic Real Estate Finance (REFI) during the period it traded under the symbol REFI (prior to October 2, 2024).

Share Issuance

• Chicago Atlantic Real Estate Finance completed its Initial Public Offering (IPO) in December 2021.
• In the second quarter of 2023, the company issued approximately 80,000 shares of common stock at a weighted average price of $15.78 per share, generating net proceeds of approximately $1.2 million.

Inbound Investments

No significant inbound investments made in Chicago Atlantic Real Estate Finance by third-parties, such as strategic partners or private equity firms, were identified during the period it traded under the symbol REFI.

Outbound Investments

• In June 2023, Chicago Atlantic committed to invest up to $150 million across its platform in the New York State Cannabis Social Equity Investment Fund.
• As of August 1, 2023, the company advanced approximately $18.8 million to fund the opening of 17 dispensaries as part of its commitment to the New York State Cannabis Social Equity Investment Fund.
• On October 1, 2024, the entity previously known as Chicago Atlantic Real Estate Finance, Inc. (symbol: REFI) changed its name to Chicago Atlantic BDC, Inc., and its ticker symbol changed to "LIEN," following a loan portfolio acquisition and joint venture transactions with Silver Spike.

Capital Expenditures

As a commercial mortgage REIT, Chicago Atlantic Real Estate Finance's primary business involves originating and investing in mortgage loans, rather than significant capital expenditures on physical property or equipment for its own operations. No substantial capital expenditures were reported for the period it traded under the symbol REFI.