Chicago Atlantic Closes Senior Secured Financing to S1 Enterprises, the Parent Company of Illicit Cannabis

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CHICAGO--(BUSINESS WIRE)--Jan 21, 2026--

Chicago Atlantic announced that it acted as joint lead arranger and administrative agent on a senior secured credit facility to S1 Enterprises (the “Company”). The Company is the parent of Illicit, a vertically integrated cannabis operator with established operations in Missouri and New Jersey.

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Proceeds from the transaction will be used to finance the sale of 100% of the Company’s equity to an Employee Stock Ownership Plan (ESOP). The ESOP encompasses the Company’s Missouri and New Jersey operations, creating a long-term ownership pathway for more than 500 employees and aligning the Company’s financial future with the people who helped build it from the ground up. As a 100% ESOP-owned S Corporation, the Company will benefit from tax-exempt status, generating a meaningful increase in cash flow that will be reinvested into continued growth, innovation, and enhanced employee benefits.

“Partnering with S1 Enterprises and the Illicit team on one of the largest ESOP transactions in the U.S. cannabis industry was a significant milestone for us,” said David Kite, Managing Partner at Chicago Atlantic. “Their proven operational discipline, leading brand platform, and commitment to employee ownership align well with our long-term lending philosophy, and we’re proud to support Illicit as a long-term partner.”

“This transaction represents a defining moment for Illicit and our entire team,” said Nate Ruby, CEO of S1 Enterprises. “Becoming a 100% employee-owned company reinforces our belief that the people who built this business should directly participate in its long-term success. Partnering with Chicago Atlantic allowed us to execute a complex ESOP transaction with a capital partner who understands our industry, our growth ambitions, and our commitment to our employees. This structure strengthens our balance sheet, enhances cash flow, and positions us to continue investing in our people, our brands, and our operations across Missouri and New Jersey.”

About Chicago Atlantic

Chicago Atlantic is a private market lender focused on industries and companies where demand for capital exceeds traditional supply. The firm focuses on loans to esoteric industries, specialty asset-based loans, liquidity solutions and growth & technology finance. Chicago Atlantic has closed over $3.2 billion in credit facilities since inception. Chicago Atlantic’s team of over 95 professionals has offices in Chicago, Miami, New York and London. For more information visit chicagoatlantic.com.

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KEYWORD: ILLINOIS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: FINANCE CONSULTING TOBACCO CANNABIS SPECIALTY BUSINESS PROFESSIONAL SERVICES RETAIL NATURAL RESOURCES

SOURCE: Chicago Atlantic

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PUB: 01/21/2026 09:00 AM/DISC: 01/21/2026 09:05 AM

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