Specialty marijuana finance company Silver Spike Investment Corp. has closed on a portfolio of loans and changed its name to Chicago Atlantic BDC.
New York-based Silver Spike said in February it planned to acquire Illinois-headquartered Chicago Atlantic Loan Portfolio.
Under terms of the acquisition, CALP and legacy Silver Spike stockholders will receive 72.8% and 27.2%, respectively, of the outstanding shares of the company’s stock, according to a Tuesday news release.
The combined company “has elected to be regulated as a business development company,” the release noted, and will trade on the Nasdaq stock exchange as LIEN.
Silver Spike previously traded on the Nasdaq as SSIC.
Silver Spike initially was a marijuana-focused special purpose acquisition company (SPAC) but has evolved into a finance entity with a broadened strategy to allow investments outside of cannabis, health and wellness.
With the acquisition, Chicago Atlantic has net assets of roughly $300 million and investments in 28 portfolio companies, according to the release.
“Chicago Atlantic seeks to capitalize on opportunities in private markets by providing debt capital to lower middle market companies, typically non-sponsor, and unique industries facing structural reasons for an insufficient supply of capital,” said Andreas Bodmeier, a Chicago Atlantic partner who has assumed the role of CEO of the combined company.
“The rapidly growing cannabis sector represents a compelling example.”
Dino Colonna, formerly a partner and co-head of credit at Silver Spike, will serve as president of Chicago Atlantic BDC.
