Safe Harbor Financial Enters into Agreement to Resolve $64.7 Million in Payment Obligations
30 March 2023 - 10:30PM
SHF Holdings, Inc., d/b/a/ Safe Harbor Financial (“Safe
Harbor” or the “Company”) (NASDAQ: SHFS), a leader in
facilitating banking, payments, and financial services to the
regulated cannabis industry, today announced that it has entered
into agreements with Partner Colorado Credit Union (“PCCU”), the
Company’s largest stockholder, resulting in the settlement of the
approximately $64.7 million deferred payable owed to PCCU (the
“Agreement”).
Under the terms of the Agreement, the Company
has agreed to resolve approximately $64.7 million of total payment
obligations owed from the September 28, 2022 business combination
in exchange for a 5-year, $14.5 million senior secured note bearing
a 4.25% annual interest rate and issuance of 11.2 million shares of
Class A common stock in the Company.
“A testament to the strong business we have
built, we believe this Agreement reflects our strategic partner’s
confidence in our ability to execute our long-term growth plans and
build shareholder value,” said Sundie Seefried, Chief Executive
Officer of Safe Harbor. “Importantly, this restructuring of our
balance sheet removes previous financial constraints on our
business, enabling us to service the current portion of all our
long-term debt while better positioning Safe Harbor to pursue a
variety of growth opportunities.”
About Safe HarborSafe Harbor is
among the first service providers to offer compliance, monitoring
and validation services to financial institutions, providing access
to traditional banking services to cannabis, hemp, CBD, and
ancillary operators, making communities safer, driving growth in
local economies, and fostering long-term partnerships. Currently
managing more than 1000 cannabis-related relationships, Safe
Harbor, through its financial institution clients, implements high
standards of accountability, transparency, monitoring, reporting
and risk mitigation measures while meeting Bank Secrecy Act
obligations in line with FinCEN guidance on cannabis-related
businesses. Over the past eight years, Safe Harbor has facilitated
more than $17 billion in deposit transactions for businesses with
operations spanning nearly 40 states and US territories with
regulated cannabis markets. For more information, visit
www.shfinancial.org.
Forward-Looking
StatementsCertain statements contained in this press
release constitute "forward-looking statements" within the meaning
of the U.S. securities laws. Forward-looking statements may
include, but are not limited to, statements with respect to trends
in the cannabis industry, including proposed changes in U.S and
state laws, rules, regulations and guidance relating to Safe
Harbor's services; Safe Harbor's growth prospects and Safe Harbor's
market size; Safe Harbor's projected financial and operational
performance, including relative to its competitors; new product and
service offerings Safe Harbor may introduce in the future; the
impact of recent volatility in the capital markets, which may
adversely affect the price of the Company's securities; the outcome
of any legal proceedings that may be instituted against Safe
Harbor; other statements regarding Safe Harbor's expectations,
hopes, beliefs, intentions or strategies regarding the future; and
the other risk factors discussed in Safe Harbor's filings from time
to time with the Securities and Exchange Commission. In addition,
any statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. The words
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intends," "outlook," "may," "might," "plan," "possible,"
"potential," "predict," "project," "should," "would," and similar
expressions may identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. These forward-looking
statements involve a number of risks and uncertainties (some of
which are beyond the control of Safe Harbor), and other
assumptions, that may cause the actual results or performance to be
materially different from those expressed or implied by these
forward-looking statements.
Media ContactSafe Harbor
FinancialNick Callaio, Marketing
Manager720.951.0619Nick@SHFinancial.org
Investor Relations
ContactMattio Communicationsshf@mattio.com
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