Peter Sack Shares Latest Earnings for Chicago Atlantic
On the latest Trade To Black podcast, Peter Sack, Managing Director from Chicago Atlantic (NASDAQ: $REFI), discusses the latest earnings his company recently reported. Plus, Shadd and Anthony will highlight news from last week involving a recent disclosure by SNDL Inc (NASDAQ: SNDL) regarding its acquisition of 5.4% of High Tide’s (NASDAQ: HITI) common shares. Michael Bronstein joins later with the Insiders Edge segment, providing updates on legalization efforts in Pennsylvania.
Kicking off, we explore the news of SNDL’s acquisition of 5.4% of High Tide’s common shares. Some speculate this could be the beginning of a takeover, but SNDL filed a 13G form signifying a passive investment rather than an aggressive acquisition strategy.
High Tide’s CEO, Raj Grover, acknowledged the filing, stating that the company’s board will monitor the situation to safeguard shareholder value. While the reason behind SNDL’s investment is still unclear, some speculate it could be a move toward potential M&A discussions.
In Florida’s cannabis market, Brady Cobb, the CEO of Sunburn Cannabis, has been making waves. Cobb’s blunt criticisms of the state’s hemp regulations have stirred controversy, especially among those operating in the unregulated hemp space. Meanwhile in Ohio, the latest market data shows that revenue has stabilized despite price compression in cannabis sales. Prices per gram have fallen by 25% since August 2024, however total daily sales remain on par with the state’s early months of adult-use legalization. This suggests consumer demand remains strong, and the market is not in decline, as some feared.
Chicago Atlantic posted some notable numbers in their most recent earnings which are shared by Peter Sack, including a total loan principal outstanding of $410.2 million across 30 portfolio companies and a portfolio weighted average yield to maturity of 17.2% as of December 31, 2024 . Peter Sack will also share his insights on the latest developments involving Innovative Industrial Properties (NYSE: IIPR) and the Pharmacann story. Pharmacann, one of IIPR’s key tenants, has defaulted on rent for nine out of eleven leases, amounting to $2.7 million in March alone. This includes properties across states like New York, Illinois, and Pennsylvania.
We’ll discuss the broader impact on the cannabis industry, and what this means for the overall industry.
