Peter Sack And Scott Gordon Talk Chicago Atlantic BDC
For Friday, October 11, on the latest Trade To Black Podcast, Peter Sack and Scott Gordon join host Anthony Varrell to talk about the launching of the Chicago Atlantic BDC. Peter Sack is Managing Partner & REIT Co-CEO at Chicago Atlantic ($REFI). Scott Gordon has become Executive Chairman of the Board and Co-Chief Investment Officer of the Company.
The Chicago Atlantic BDC specializes in lending to cannabis companies, offering capital to operators who often struggle to access traditional bank financing due to federal regulations surrounding cannabis. Peter and Scott discuss the differences between BDCs and REITs when it comes to the industry and the evolution of capital formation, particularly in the context of cash-flow lending versus asset-based lending in earlier stages.
We’ll examine the cannabis industry’s current performance and capital allocations, taking a look forward at expectations heading into 2025. Florida’s Amendment 3 would benefit large operators strongly in the state of Florida, however federal rescheduling would likely serve a wider audience.
We’ll also chat about how California may be suffering from regulatory challenges that stem from federal delays. Given what has been happing in the state, is hemp worth investing in? Scott and Peter will share their thoughts.
Guap joins later in the show to discuss the latest headlines in the space including Tilray’s earnings, expansions in the alcohol business, and how that might impact the company’s operations in cannabis. Tilray just released their report for Q1 2025. Among some of the big highlights: $200 million in net revenue, representing a 13% growth year over year; an increase in gross profit of 35% to $59.7 million; and an increase in gross margin of over 500 basis points, to 30%. Adjusted EBITDA is $9.3 million compared to $10.7 million in the prior year quarter.
This week, Canopy Growth Corporation confirmed the acquisition of Wana has been completed. Canopy USA now owns 100% of the outstanding equity interests in Wana. Find out more about what this means for investors in this episode of Trade To Black.