To facilitate the merger, Chicago Atlantic Real Estate Finance will transition from a real estate investment trust to a business development company, adopting a temporary advisory agreement with the partner firm's adviser. Following this conversion, shareholders in the real estate entity will receive Chicago Atlantic BDC stock, with the exchange ratio tied to the net asset value of both companies at the time of closing.

Independent board committees at both firms have already signaled their support for the deal, citing the potential for reduced overhead and more efficient oversight. Should the transaction receive necessary shareholder approval, the newly merged entity plans to evaluate a share repurchase program valued at up to $25 million.