Chicago Atlantic Real Estate Finance Enters Material Agreement

TL;DR

CA REIT enters new material agreement, watch for financial impact.

AI Summary

On October 18, 2024, Chicago Atlantic Real Estate Finance, Inc. entered into a Material Definitive Agreement related to a financial obligation. The filing, dated October 23, 2024, details the creation of a direct financial obligation or an off-balance sheet arrangement for the registrant. Specific details regarding the nature and value of this obligation are not fully disclosed in the provided text.

Why It Matters

This filing indicates a new financial commitment or obligation for Chicago Atlantic Real Estate Finance, which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and a new financial obligation, which inherently carries some level of risk until more details are known.

Key Players & Entities

• Chicago Atlantic Real Estate Finance, Inc. (company) — Registrant
• October 18, 2024 (date) — Date of Earliest Event Reported
• October 23, 2024 (date) — Date of Report

FAQ

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share REFI The Nasdaq Global Ma
• $50,000,000 — enders") for an aggregate commitment of $50,000,000 in unsecured notes (the "Loan"). The

Filing Documents

• ea0218083-8k_chicago.htm (8-K) — 35KB
• ea021808301ex10-1_chicago.htm (EX-10.1) — 346KB
• ea021808301ex99-1_chicago.htm (EX-99.1) — 6KB
• ex99-1_001.jpg (GRAPHIC) — 4KB
• 0001213900-24-089782.txt ( ) — 649KB
• refi-20241018.xsd (EX-101.SCH) — 3KB
• refi-20241018_lab.xml (EX-101.LAB) — 33KB
• refi-20241018_pre.xml (EX-101.PRE) — 22KB
• ea0218083-8k_chicago_htm.xml (XML) — 4KB

01

Item 1.01. Entry into a Material Definitive Agreement. On October 18, 2024, Chicago Atlantic Real Estate Finance, Inc., a Maryland corporation (the "Company"), entered into a Loan Agreement (the "Loan Agreement") by and among the Company and the various financial institutions party thereto from time to time, as lenders (the "Lenders") for an aggregate commitment of $50,000,000 in unsecured notes (the "Loan"). The Loan has a contractual term of four (4) years, terminating on October 18, 2028 (the "Maturity Date") and bears interest at a rate of 9.00% per annum, which may increase by 50 basis points per annum if the Company fails to meet certain conditions set by the Lenders under the terms of the Loan Agreement. The Company paid an upfront fee in an amount equal to 1.50% of the aggregate amount of the Loan advanced by Lenders on the Closing Date (the " Upfront Fee "). The Upfront Fee is fully earned, non-refundable and was paid on the Closing Date. The Company shall have the right at any time to prepay the Loans of all Lenders, without premium or penalty, provided that any such prepayment made on or prior to the second anniversary of the Closing Date shall be accompanied by a prepayment premium equal to (a) if such prepayment is made on or prior to the first anniversary of the Closing Date, 3.00% of the amount of such prepayment, and (b) if such prepayment is made after the first anniversary of the Closing Date but on or prior to the second anniversary of the Closing Date, 2.00% of the amount of such prepayment. The Loan Agreement is subject to ongoing representations, warranties and covenants that are customary for this type of transaction. The description above is only a summary of the material provisions of the Loan Agreement and is qualified in its entirety by reference to a copy of the Loan Agreement which is filed as Exhibit 10.1 to this current report on Form 8-K and incorporated by reference herein. On October 23, 2024, the Company issued a pre

03

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of Registrant. The information contained in Item 1.01 to this current report on Form 8-K is by this reference incorporated in this Item 2.03. 1

Financial Statements and Exhibits

Financial Statements and Exhibits. d) Exhibits. Exhibit Number Description 10.1 * Loan Agreement, dated as of October 18, 2024, among Chicago Atlantic Real Estate Finance, Inc., and the financial institutions party thereto, as Lenders. 99.1 Press release, dated October 23, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * In accordance with Item 601(b)(10) of Regulation S-K, certain provisions or terms of the Agreement have been redacted. The Company will provide an unredacted copy of the exhibit on a supplemental basis to the SEC or its staff upon request. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized. CHICAGO ATLANTIC REAL ESTATE FINANCE, INC. Date: October 23, 2024 By: /s/ Peter Sack Name: Peter Sack Title: Co-Chief Executive Officer 3

View Full Filing

View this 8-K filing on SEC EDGAR