Silver Spike Investment Corp. (“Silver Spike” or the
“Company”), a specialty finance company that was formed to invest
across the cannabis ecosystem through investments primarily in the
form of direct loans to privately held cannabis companies, today
announced its financial results for the quarter ended
March 31, 2023.
Quarter Ended 3/31/23 Highlights
- Total investment income of $2.5 million
- Net investment income of $1.4 million, or $0.22 per share
- Investment portfolio of $55.6 million at fair value
- Net asset value (“NAV”) per share increased to $14.29 on March
31, 2023 from $13.91 on December 31, 2022
Scott Gordon, Chairman and Chief Executive
Officer of Silver Spike, commented “As the cannabis industry
continues to move through a challenging phase, we remain focused on
methodically underwriting new loans to premier operators and brands
in the industry. Lending to cannabis companies is as
limited as we have seen in recent years, which puts us in a unique
position to continue capturing attractive risk adjusted returns for
our investors. Earlier this month, we led and participated in the
$35 million initial close of a senior secured credit facility
for DreamFields Brands Inc., a leading multi-state cannabis
operator, and one of the fastest growing companies in the cannabis
industry, through its Jeeter brand.”
Conference Call Silver Spike
will host a conference call and webcast to discuss the Company's
first quarter 2023 financial results at 8:00 a.m. Eastern Time
on Friday, May 12, 2023. Participants may register for the
call here. A live webcast of the call will also be available
on the Company’s website
at ssic.silverspikecap.com.
The presentation to be used in connection with the conference
call and webcast will be available at ssic.silverspikecap.com.
A replay of the call will be available
at ssic.silverspikecap.com by end of day May 12,
2023.
Background
Silver Spike Investment Corp. is a closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940, as amended, and has elected to be treated as a
regulated investment company for U.S. federal income tax purposes.
On February 8, 2022, Silver Spike completed its initial public
offering. Silver Spike is managed by Silver Spike Capital, LLC, an
investment manager focused on the cannabis and alternative health
and wellness industries.
Results of Operations
For the three months ended March 31, 2023,
total investment income was $2.5 million. This compares to total
expenses of $1.1 million, resulting in net investment income of
approximately $1.4 million, or $0.22 per share.
Silver Spike recorded a net unrealized gain of
$1.0 million during the quarter ended March 31, 2023, primarily
related to the fair valuation of our debt investments.
The Company generated a net increase in net
assets from operations of $2.4 million, or $0.38 per share.
Net Asset Value
As of March 31, 2023, NAV per share
increased to $14.29, compared to $13.91 as of December 31, 2022.
The increase in NAV per share was primarily driven by the results
from operations. Total net assets as of March 31, 2023 were $88.8
million, compared to $86.5 million as of December 31, 2022.
Portfolio and Investment
Activity
As of March 31, 2023, Silver Spike’s
investment portfolio had an aggregate fair value of approximately
$55.6 million, comprising $45.7 million in secured loans in three
portfolio companies and $9.9 million in secured notes in three
portfolio companies.
During the quarter ended March 31, 2023, the
Company made one investment. Subsequent to the quarter end, the
Company made one additional investment on May 3, 2023.
At quarter end March 31, 2023, there were no
loans on non-accrual status.
Liquidity and Capital
Resources
At March 31, 2023, the Company had $32.5
million in available liquidity, comprising $32.5 million in cash
equivalents.
About Silver Spike Investment
Corp.
Silver Spike, a specialty finance company that
has elected to be regulated as a business development company under
the Investment Company Act of 1940, as amended, was formed to
invest across the cannabis ecosystem through investments primarily
in the form of direct loans to privately held cannabis companies.
Silver Spike’s investment objective is to maximize risk-adjusted
returns on equity for its shareholders by investing primarily in
secured and unsecured debt in cannabis companies and other
companies in the health and wellness sector. Silver Spike is
managed by Silver Spike Capital, LLC, an investment manager focused
on the cannabis and alternative health and wellness industries. For
more information, please visit
https://ssic.silverspikecap.com/.
Forward-Looking Statements
Certain information contained herein may
constitute “forward-looking statements” that involve substantial
risks and uncertainties. Such statements involve known and unknown
risks, uncertainties and other factors and undue reliance should
not be placed thereon. These forward-looking statements are not
historical facts, but rather are based on current expectations,
estimates and projections about the Company, its current and
prospective portfolio investments, its industry, its beliefs and
opinions, and its assumptions. Words such as “anticipates,”
“expects,” “intends,” “plans,” “will,” “may,” “continue,”
“believes,” “seeks,” “estimates,” “would,” “could,” “should,”
“targets,” “projects,” “outlook,” “potential,” “predicts” and
variations of these words and similar expressions are intended to
identify forward-looking statements. These statements are not
guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond the
Company’s control and difficult to predict and could cause actual
results to differ materially from those expressed or forecasted in
the forward-looking statements including, without limitation, the
risks, uncertainties and other factors identified in the Company’s
filings with the SEC. Investors should not place undue reliance on
these forward-looking statements, which apply only as of the date
on which the Company makes them. The Company does not undertake any
obligation to update or revise any forward-looking statements or
any other information contained herein, except as required by
applicable law.
Contacts
Investors:Bill
Healybill@silverspikecap.com212-905-4933
Media:Alan Oshiki and Sydney GeverH/Advisors
AbernathySilverspikecapital@h-advisors.global212-371-5999
SILVER SPIKE INVESTMENT CORP.Statements of
Assets and Liabilities |
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Investments at fair
value: |
|
|
|
|
|
|
Non-control/non-affiliate investments at fair value (amortized cost
of $54,910,290 and $50,527,898, respectively) |
|
$ |
55,623,299 |
|
|
$ |
50,254,550 |
|
Cash and cash equivalents |
|
|
32,544,027 |
|
|
|
35,125,320 |
|
Interest receivable |
|
|
1,568,026 |
|
|
|
1,559,081 |
|
Prepaid expenses |
|
|
254,651 |
|
|
|
32,323 |
|
Total
assets |
|
$ |
89,990,003 |
|
|
$ |
86,971,274 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee payable |
|
$ |
409,384 |
|
|
$ |
170,965 |
|
Income-based incentive fee
payable |
|
|
203,821 |
|
|
|
- |
|
Capital gains incentive fee
payable |
|
|
142,602 |
|
|
|
- |
|
Legal fees payable |
|
|
99,988 |
|
|
|
42,215 |
|
Administrator fees
payable |
|
|
82,936 |
|
|
|
57,306 |
|
Valuation fees payables |
|
|
72,185 |
|
|
|
- |
|
Audit fees payable |
|
|
47,883 |
|
|
|
50,000 |
|
Professional fees payable |
|
|
46,936 |
|
|
|
28,744 |
|
Director’s fee payable |
|
|
35,944 |
|
|
|
32,049 |
|
Excise tax payable |
|
|
- |
|
|
|
80,566 |
|
Due to affiliate |
|
|
- |
|
|
|
37 |
|
Other payables |
|
|
15,515 |
|
|
|
33,663 |
|
Total
liabilities |
|
$ |
1,157,194 |
|
|
$ |
495,545 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(Note 6) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
NET
ASSETS |
|
|
|
|
|
|
|
|
Common Stock, $0.01 par value,
100,000,000 shares authorized, 6,214,672 and 6,214,672 shares
issued and outstanding, respectively |
|
$ |
62,147 |
|
|
$ |
62,147 |
|
Additional
paid-in-capital |
|
|
85,038,887 |
|
|
|
84,917,788 |
|
Distributable
earnings/(Accumulated losses) |
|
|
3,731,775 |
|
|
|
1,495,794 |
|
Total net
assets |
|
$ |
88,832,809 |
|
|
$ |
86,475,729 |
|
NET ASSET VALUE PER
SHARE |
|
$ |
14.29 |
|
|
$ |
13.91 |
|
SILVER SPIKE INVESTMENT CORP.Statements of
Operations(Unaudited) |
|
|
|
|
|
|
|
|
|
For the threemonths ended |
|
|
For the threemonths ended |
|
|
|
March 31, 2023 |
|
|
March 31, 2022 |
|
INVESTMENT
INCOME |
|
|
|
|
|
|
Non-control/non-affiliate investment income |
|
|
|
|
|
|
Interest income |
|
$ |
2,457,839 |
|
|
$ |
10,073 |
|
Fee income |
|
|
- |
|
|
|
- |
|
Total investment
income |
|
|
2,457,839 |
|
|
|
10,073 |
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
Management fee |
|
|
238,419 |
|
|
|
- |
|
Income-based incentive
fee |
|
|
203,821 |
|
|
|
- |
|
Capital gains incentive
fee |
|
|
142,602 |
|
|
|
- |
|
Legal expenses |
|
|
98,760 |
|
|
|
34,069 |
|
Audit expense |
|
|
97,883 |
|
|
|
10,000 |
|
Administrator fees |
|
|
77,844 |
|
|
|
47,151 |
|
Valuation fees |
|
|
73,065 |
|
|
|
- |
|
Insurance expense |
|
|
69,082 |
|
|
|
46,488 |
|
Director expenses |
|
|
35,944 |
|
|
|
- |
|
Professional fees |
|
|
18,192 |
|
|
|
34,920 |
|
Custodian fees |
|
|
12,000 |
|
|
|
12,000 |
|
Organizational expenses |
|
|
- |
|
|
|
34,168 |
|
Other expenses |
|
|
19,504 |
|
|
|
6,808 |
|
Total
expenses |
|
|
1,087,116 |
|
|
|
225,604 |
|
|
|
|
|
|
|
|
|
|
NET INVESTMENT INCOME
(LOSS) |
|
|
1,370,723 |
|
|
|
(215,531 |
) |
|
|
|
|
|
|
|
|
|
NET REALIZED GAIN
(LOSS) FROM INVESTMENTS |
|
|
|
|
|
|
|
|
Net realized gain
(loss) from investments |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN
UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS |
|
|
|
|
|
|
|
|
Non-controlled/non-affiliate
investments |
|
|
986,357 |
|
|
|
- |
|
Net change in
unrealized appreciation/(depreciation) on investments |
|
|
986,357 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
|
$ |
2,357,080 |
|
|
$ |
(215,531 |
) |
|
|
|
|
|
|
|
|
|
NET INVESTMENT INCOME (LOSS)
PER SHARE — BASIC AND DILUTED |
|
$ |
0.22 |
|
|
$ |
(0.06 |
) |
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS PER SHARE — BASIC AND DILUTED |
|
$ |
0.38 |
|
|
$ |
(0.06 |
) |
WEIGHTED AVERAGE SHARES
OUTSTANDING — BASIC AND DILUTED |
|
|
6,214,672 |
|
|
|
3,557,529 |
|
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