- Chicago Atlantic is offering 6.25 million shares of its common stock to investors.
- The expected price range for the proposed offering is US$16-US$18 per common share.
- The company plans to trade in the NASDAQ exchange under the ticker REFI.
Chicago Atlantic Real Estate Finance, Inc. is expected to launch its initial public offering (IPOs) on Dec 8, one of the most anticipated IPOs this year.
The Chicago, Illinois-based Chicago Atlantic is a real estate investment trust (REIT) and primarily provides loans to state-licensed operators in the cannabis sector.
Chicago Atlantic REIT Manager, LLC, manages the company. It filed the form S-11 or registration statement for the IPO with the Securities and Exchange Commission on Nov 29.
Share offering and pricing of IPO:
It is offering 6.25 million shares of its common stock to investors. Additionally, according to its SEC filings, it will provide a 30-day option for underwriters to buy an additional 937,500 shares of common stocks. The company said it would use the proceeds to expand the business.
The price range for the proposed offering is expected to be between US$16 and US$18 per share. The stock is expected to debut in the NASDAQ Global Market under the ticker symbol "REFI" on December 8.
The joint book-running managers of the offering are JMP Securities LLC, Oppenheimer & Co. Inc., and Compass Point Research & Trading, LLC. At the same time, East West Markets, LLC, and Lake Street Capital Markets LLC would act as co-managers for the
For the six months ended on Sep 30, 2021, the company reported total revenue of US$5.29 million. Its net income was US$5.13 million in the same period.
Its cash and cash equivalents were US$8.74 million as of Sep 30, 2021.
The year 2021 saw a flurry of IPOs, demonstrating the confidence of businesses in economic recovery. Chicago Atlantic aims to provide risk-adjusted returns to shareholders through dividends and other distributions. According to its filing, it hopes to meet the target by structuring and investing in first-mortgage loans to state-licensed operators in the cannabis industry, secured by real estate, equipment, receivables, licenses, and other assets.