On Thursday, Silver Spike Investment Corp. SSIC, a specialty finance company announced its financial results for the quarter ended September 30, 2022. Silver Spike was formed to invest across the cannabis ecosystem through investments in the form of direct loans to, and equity ownership of privately held cannabis companies,
Second Quarter 2023 Highlights
- Total investment income of $1.2 million
- Net investment income of $0.6 million, or $0.09 per share
- The investment portfolio of $24.5 million at fair value
- Net asset value per share increased to $13.73 on September 30, 2022, from $13.64 on June 30, 2022
Results of Operations
For the three months that ended September 30, 2022, the total investment income was $1.2 million. This compares to total expenses of $0.6 million, resulting in a net investment income of approximately $0.6 million, or $0.09 per share.
Silver Spike recorded a net unrealized gain of slightly more than $0.0 million during the second quarter, primarily related to the fair valuation of our debt investments.
The Company also generated a net increase in net assets from operations of $0.6 million, or $0.09 per share.
Net Asset Value (NAV): As of September 30, 2022, NAV per share increased to $13.73, compared to $13.64 as of June 30, 2022. “The increase in NAV per share was primarily driven by the results from operations” Also, “Total net assets at the end of the second quarter were $85.3 million, compared to $84.8 million at the end of the first quarter,”
Portfolio and Investment Activity: As of September 30, 2022, Silver Spike’s investment portfolio had an aggregate fair value of approximately $24.5 million comprising $24.5 million in secured loans in 2 portfolio companies.
During the second quarter, the Company did not make any investments.
As of the end of the second quarter, there were no loans on non-accrual status.
Liquidity and Capital Resources: On September 30, 2022, the Company had $61.1 million in available liquidity, comprising $61.1 million in cash and cash equivalents.
“We continue leveraging our platform’s direct origination engine to build a robust pipeline of attractive lending opportunities. Our rigorous underwriting standards and time-tested specialized structuring skills position Silver Spike as one of the leading providers of credit to a regulatorily complex and rapidly-growing industry with little access to traditional sources of capital,” stated Scott Gordon, chairman and CEO of Silver Spike.
“Throughout the quarter, our investment adviser diligence several potential private and public company borrowers. In the month of October, we made three investments that were largely a result of these diligence efforts,” Gordon concluded.
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