Chicago Atlantic Real Estate Finance, a newly-formed commercial mortgage REIT focused on the cannabis industry, announced terms for its IPO on Monday.
The Chicago, IL-based company plans to raise $106 million by offering 6.3 million shares at a price range of $16 to $18. The company plans to raise an additional $7.5 million in a concurrent private placement to certain executives. At the midpoint of the proposed range, Chicago Atlantic Real Estate Finance would command a market value of $296 million. The company plans to issue regular quarterly dividends.
Chicago Atlantic Real Estate Finance is a newly-formed commercial real estate finance company whose objective is to originate, structure, and invest in first mortgage loans and alternative structured financings secured by commercial real estate properties. Its current portfolio is comprised primarily of senior loans to state-licensed operators in the cannabis industry, secured by real estate, equipment, receivables, licenses, or other assets. As of September 30, 2021, the company's portfolio includes one loan that is subordinate to a first mortgage.
Chicago Atlantic Real Estate Finance was founded in 2021 and booked $5 million in revenue for the 12 months ended September 30, 2021. It plans to list on the Nasdaq under the symbol REFI. JMP Securities, Compass Point, and Oppenheimer & Co. are the joint bookrunners on the deal.
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