Marijuana Industry Lender Chicago Atlantic Debuts On NASDAQ Via $100M IPO

Cannabis-focused commercial real estate finance company Chicago Atlantic Real Estate Finance, Inc. announced Tuesday that it is seeking to raise $100 million through an initial public offering of 6.25 million shares of its common stock at $16 per share.

The company’s common stock is expected to begin trading on the NASDAQ Global Market on Wednesday, Dec. 8 under the symbol ‘REFI.’

Chicago Atlantic anticipates closing the offering on or about Dec.10, 2021.

The company also granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock at the IPO price.

In addition, the company plans to use the total gross proceeds of roughly $100 million, before deducting underwriting discounts and commissions and other offering expenses and excluding any exercise of the underwriters’ option to purchase additional shares, to make investments in accordance with its investment objective and strategies and for general corporate purposes.

JMP Securities LLC, Compass Point Research & Trading, LLC, and Oppenheimer & Co. Inc. are serving as joint book-running managers for the transaction, while Lake Street Capital Markets LLC and East West Markets, LLC are acting as co-managers.

Chicago Atlantic, managed by Chicago Atlantic REIT Manager, LLC., is looking to provide attractive, risk-adjusted returns for stockholders primarily through consistent current income dividends and other distributions and secondarily through capital appreciation.

Photo: Courtesy of Nataliya Vaitkevich from Pexels

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