Chicago Atlantic is a market-leading publicly traded commercial mortgage REIT utilizing significant real estate, credit and cannabis expertise to originate senior secured loans primarily to state-licensed cannabis operators in limited-license states in the U.S.
We utilize an institutional approach to origination and a “credit-first’ underwriting process with stringent criteria centered around operator performance and strength, collateral, regulatory and market environments, and other factors. Over the years, we have developed a strong reputation among borrowers for delivering on commitments made. Operators choose Chicago Atlantic for our brand recognition, ability to execute on a timely basis, an efficient deal process, in-depth industry knowledge and strong ties to financial sponsors active in the cannabis space.
Sales of the U.S. cannabis industry are expected to rival beer, spirits and wine by 2030. Demand for financing in the cannabis market is expected to continue to rise due to recent and future state legalization of cannabis for medical and adult use as well as increased consumer adoption, with both trends requiring significant capital expenditures by operators. At the same time, the federal prohibition on cannabis use and commercialization hampers commercial and financial activities, creating a limited competition environment for Chicago Atlantic in a highly fragmented market.
We have a track record of identifying market inefficiencies, particularly where risk is fundamentally mispriced, and the ability to redeploy capital quickly. We benefit from our sponsor’s leading cannabis lending platform led by an experienced and robust origination team responsible for sourcing and closing over $1 billion in credit facilities since 2019. Chicago Atlantic has a sizable, growing loan portfolio that offers compelling risk-adjusted returns. Our portfolio is diversified across operators, geographies, and asset types with strong real estate collateral coverage as well as additional collateral. With a proprietary sourcing network and direct originations team that lead to a strong origination pipeline, we are the lender of choice to leading cannabis industry operators.