Silver Spike Investment Corp. (NASDAQ:SSIC), a specialty finance company that has elected to be regulated as a business development company, reported its financial results Thursday for the second quarter of the year. The New York-based company disclosed total investment income of $3.1 million, compared to $2.9 million in the same quarter of 2023.
"While there remains some uncertainty around federal cannabis regulatory reform in the near-term, we have seen positive momentum at the state level, with several meaningful catalysts expected over the coming months," Scott Gordon, chairman and chief executive officer of the company stated. "Larger scaled cannabis operators and certain cannabis brands have performed well in what remains a generally difficult operating environment for cannabis companies. As expected, we have recently seen an increase in debt capital markets activity, a trend that we expect to continue and one that we believe that we are well-positioned to take advantage of. The company's existing portfolio has performed well against the challenging cannabis market backdrop, and we are pleased to announce another quarterly dividend of $0.25."
Q2 Financial Summary
- Net investment income of $1.5 million, or $0.25 per share, compared to $1.9 million or $0.31 per share in the corresponding quarter of 2023.
- Net asset value per share decreased from $13.60 on March 31, 2024 to $13.56 on June 30, 2024. Silver Spike attributed this decline to dividend payments.
- A cash dividend of $0.25 per share was declared. The dividend is payable on September 27, 2024 to stockholders of record on September 19, 2024.
- Investment portfolio amounted to $53.4 million, comprising $44.3 million in secured loans in four portfolio companies, $8.3 million in secured notes in two portfolio companies, and $0.8 million of equity in one portfolio company. In the first quarter of the year, the investment portfolio was $54.8 million.
- Total net assets as of June 30, 2024 were $84.3 million, compared to $84.5 million as of March 31, 2024.
- As of June 30, 2024, there were no loans on non-accrual status.
Loan Portfolio Acquisition Agreement
On February 20, 2024, Silver Spike announced that it entered into a definitive agreement to purchase a portfolio of loans from Chicago Atlantic Loan Portfolio (NASDAQ:REFI) in exchange for newly issued shares of the company's common stock, subject to certain customary closing conditions.
Price Action
Silver Spike shares closed Thursday's market session flat at $11.90 per share.
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