Cannabis Finance Company Silver Spike Announces Solid 2023 Gains
Silver Spike Investment Corp. (NASDAQ:SSIC), a cannabis-focused specialty finance company, announced Wednesday its financial results for the year ending December 31, 2023.
Quarter Ended 12/31/2023 Financial Highlights
- Net investment income of $1.7 million, or $0.28 per share compared to $1.6 million, $0.26 per share in the previous quarter.
- Investment portfolio of $54.1 million at fair value, which compares to $57.4 million at fair value in the third quarter.
- Net asset value ("NAV") per share decreased from $14.06 on September 30, 2023 to $13.77 on December 31, 2023.
- A cash dividend of $0.25 per share was declared. The dividend is payable on March 28, 2024 to stockholders of record on March 20, 2024.
Year Ended December 2023 Financial Highlights
- Net investment income of $6.6 million, or $1.07 per share.
- Net asset value ("NAV") per share decreased to $13.77, compared to $14.06 as of September 30, 2023. The decrease in NAV per share was primarily driven by dividend payments. Total net assets as of December 31, 2023 were $85.6 million, compared to $87.4 million as of September 30, 2023.
Loan Portfolio Acquisition Agreement
A strategic pivot was marked by the acquisition of the Chicago Atlantic Loan Portfolio on February 20, 2024, promising to enrich SSIC’s investment breadth. Operationally, the closing quarter reflected a robust net increase in net assets from operations, pegged at $2.5 million, or $0.40 per share, partly buoyed by a net unrealized gain of $0.8 million from debt investment valuations.
Top executives leading some of the largest cannabis operators are slated to share valuable advice and insights at the upcoming Benzinga Cannabis Capital Conference in Florida on April 16-17. The two-day event that returns to The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow.
Liquidity And Dividend
Despite the NAV’s marginal decrease, influenced by dividend disbursements, SSIC’s liquidity stood strong at $32.6 million in cash equivalents by year-end. The dividend declaration underscores the company’s commitment to shareholder value, complemented by an optional dividend reinvestment plan (DRIP) for stockholders favoring reinvestment over cash payouts.
CEO Outlook
"We are pleased to have announced a dividend of $0.25 per share. Despite the continued challenging environment for cannabis operators and investors, we are pleased with the continued strong performance of our portfolio companies and remain encouraged by signs of improved market dynamics for several state markets. We anticipate more attractive debt-related investment opportunities with favorable risk/reward characteristics throughout the remainder of 2024, and we will seek to add investments to the portfolio in a disciplined manner," Chairman and CEO Scott Gordon expressed.
SSIC Price Action
SSIC's shares were trading 1.63% lower at $0.1606 per share at the time of this writing around 1 PM ET Thursday.
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