Silver Spike Investment Corp. SSIC is a specialty finance firm shaped to invest across the cannabis ecosystem via investments in the variety of direct loans to hashish businesses.
The firm allocated a full of $21 million to the Verano Holdings Corp. VRNOF $350 million senior secured credit history facility in November and noted web expenditure profits of $550,415 for the Q2 2023, compared to net expense reduction of $128,186 in Q2 2022.
On January 18th, hashish REIT, Progressive Industrial Homes, Inc. IIPR, declared that three of its tenants are in default:
SH Dad or mum, Inc. (Parallel) was in default on its obligations to shell out rent at a person of IIP’s Pennsylvania properties (approximately 2.9% of invested / fully commited cash). Hire was paid in entire by means of January 31, 2023 on all other IIPR homes leased by Parallel.
Environmentally friendly Peak Industries, Inc. (Skymint) was in default on its obligations to fork out lease at 1 of IIPR’s Michigan properties below building (around 2.7% of invested / committed capital). Rent was compensated in whole by means of January 31, 2023 on all other IIPR properties leased by Skymint.
Affiliates of Professional medical Trader Holdings, LLC (Vertical) have been in default on their obligations to pay rent at IIPR’s California homes (about .7% of invested / committed funds).
IIPR share cost fell from $110.78 to $91.9 (at the time of writing Friday early morning), next the announcement.
As a reaction to IIPR’s announcement, Cantor Fizgerald’s analyst Pablo Zuanic, taken care of an ‘Overweight’ score on Silver Spike Investment’s inventory, with a 12-month rate target of $15.30 (like a dividend).
The analyst managed the value focus on for Silver Spike Expenditure, as the corporation structure lets entry to a bigger addressable (financial debt) sector possibility relative to those people focused only on genuine estate-backed lending.
“Congress’ failure to pass the Safe Banking Act, merged with macro challenges and state-precise problems, will pressure the U.S. hashish market, and primarily people providers with stretched stability sheets,” Zuanic reported, incorporating that Silver Spike is BDC with a blue-chip credit history portfolio and 40% of its capital nevertheless still left to deploy, but buying and selling at much more than a 30% low cost to internet asset value.
At $9.55 (1/19), Silver Spike trades at additional than a 30% price cut to web asset worth, and the business valie is barely over zero.
Zuanic believes that improved deployment of the money base, leveraged at some place, and the announcement of a recurring dividend payment will both equally assistance the stock return to internet asset valuation.
“Also, we would be expecting buyers (and foreseeable future financial institution loan companies to Silver Spike) to turn into extra appreciative of the company’s financial loan portfolio as expected sector challenges get started to harm other companies,” the analyst concluded.
The Price Action
Silver Spike Investment decision shares had been trading flat at $9.51 for every share at the time of composing Friday early morning.
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