Safe Harbor Financial Announces Temporary Pause in Principal Payments and Ongoing Discussions to Modify Promissory Note with PCCU
Safe Harbor Financial (SHFS) has announced a temporary pause in principal payments for February and March 2025 on its Senior Secured Promissory Note with Partner Colorado Credit Union (PCCU). The agreement comes as both parties engage in discussions about potentially modifying the Note terms.
The temporary pause is expected to improve Safe Harbor's liquidity by approximately $510,000. While the company is working to finalize a modification within the two-month period, there is no guarantee an agreement will be reached.
The fintech company, which facilitates financial services and credit facilities to the regulated cannabis industry, views this Letter Agreement as PCCU's commitment to support their plans for scaling and expanding service offerings.
Safe Harbor Financial (SHFS) ha annunciato una pausa temporanea nei pagamenti di capitale per febbraio e marzo 2025 sul suo Prestito Garantito Senior con il Partner Colorado Credit Union (PCCU). L'accordo arriva mentre entrambe le parti sono impegnate in discussioni riguardo alla potenziale modifica dei termini del Prestito.
La pausa temporanea è prevista per migliorare la liquidità di Safe Harbor di circa $510.000. Sebbene l'azienda stia lavorando per finalizzare una modifica entro il periodo di due mesi, non c'è garanzia che venga raggiunto un accordo.
L'azienda fintech, che facilita servizi finanziari e crediti per l'industria regolamentata della cannabis, considera questo Accordo di Lettera come l'impegno di PCCU a supportare i loro piani di crescita e espansione dell'offerta di servizi.
Safe Harbor Financial (SHFS) ha anunciado una pausa temporal en los pagos de capital para febrero y marzo de 2025 en su Pagaré Senior Garantizado con el Partner Colorado Credit Union (PCCU). El acuerdo se produce mientras ambas partes participan en discusiones sobre la posible modificación de los términos del Pagaré.
Se espera que esta pausa temporal mejore la liquidez de Safe Harbor en aproximadamente $510,000. Mientras la empresa trabaja para finalizar una modificación dentro del período de dos meses, no hay garantía de que se llegue a un acuerdo.
La empresa fintech, que facilita servicios financieros y líneas de crédito para la industria regulada del cannabis, ve este Acuerdo de Carta como el compromiso de PCCU para apoyar sus planes de escalado y expansión de la oferta de servicios.
세이프 하버 파이낸셜 (SHFS)는 파트너 콜로라도 신용 조합 (PCCU)과의 시니어 담보어음에 대해 2025년 2월과 3월의 원금 지불을 일시 중단한다고 발표했습니다. 이 협정은 양측이 어음 조건을 수정할 가능성에 대해 논의하는 동안 이루어졌습니다.
일시적인 중단은 세이프 하버의 유동성을 약 $510,000 정도 향상시킬 것으로 예상됩니다. 회사는 두 달 이내에 수정을 완료하기 위해 노력하고 있으나, 합의가 이루어질 것이라는 보장은 없습니다.
규제된 대마초 산업에 금융 서비스와 신용 시설을 제공하는 이 핀테크 회사는 이번 서신 계약을 PCCU가 그들의 서비스 확장 및 확대 계획을 지원하겠다는 약속으로 보고 있습니다.
Safe Harbor Financial (SHFS) a annoncé une pause temporaire des paiements de capital pour février et mars 2025 sur son Billet de Trésorerie Senior Sécurisé avec le Partner Colorado Credit Union (PCCU). L'accord survient alors que les deux parties engagent des discussions pour modifier potentiellement les termes du Billet.
Cette pause temporaire devrait améliorer la liquidité de Safe Harbor d'environ 510 000 $. Bien que la société travaille à finaliser une modification dans la période de deux mois, rien ne garantit qu'un accord sera atteint.
L'entreprise fintech, qui facilite des services financiers et des crédits pour l'industrie réglementée du cannabis, considère cet Accord de Lettre comme l'engagement de PCCU à soutenir leurs plans d'expansion et de développement de l'offre de services.
Safe Harbor Financial (SHFS) hat eine vorübergehende Pause bei den Kapitalzahlungen für Februar und März 2025 für ihren Senior Secured Promissory Note mit der Partner Colorado Credit Union (PCCU) angekündigt. Die Vereinbarung kommt, während beide Parteien Gespräche über mögliche Änderungen der Anleihebedingungen führen.
Die vorübergehende Pause wird voraussichtlich die Liquidität von Safe Harbor um etwa $510.000 verbessern. Während das Unternehmen daran arbeitet, innerhalb des zweimonatigen Zeitraums eine Änderung abzuschließen, gibt es keine Garantie, dass eine Vereinbarung erreicht wird.
Das Fintech-Unternehmen, das Finanzdienstleistungen und Kreditmöglichkeiten für die regulierte Cannabis-Industrie bereitstellt, betrachtet diese Briefvereinbarung als das Engagement von PCCU, die Pläne zur Skalierung und Erweiterung des Dienstleistungsangebots zu unterstützen.
- Temporary relief from principal payments improving liquidity by $510,000
- PCCU's willingness to negotiate Note modifications indicates positive relationship with lender
- Company requires payment relief from creditor indicating potential cash flow issues
- Uncertainty about reaching final agreement on Note modification
- Need for debt restructuring suggests financial strain
Insights
This debt modification agreement reveals complex dynamics at play for Safe Harbor Financial. The temporary principal payment pause, while providing immediate relief of
Several critical factors emerge from this development:
- The company's stated intention to immediately pursue growth investments with the freed-up capital presents a strategic pivot. While this could potentially enhance long-term value, it's an aggressive move for a company seeking debt relief.
- PCCU's willingness to negotiate suggests confidence in Safe Harbor's business model, but the need for restructuring indicates possible covenant stress or cash flow challenges.
- The two-month negotiation window is notably brief for a comprehensive debt restructuring, suggesting this could be a stopgap measure while more substantial modifications are explored.
For investors, this development presents a mixed scenario. While improved liquidity is positive, the need for payment relief from a relatively modest
PCCU Modifies Credit Facility with Safe Harbor by Pausing Principal Payments for Two Months as New Terms are Considered; Safe Harbor Intends to Commence Making Growth Investments Immediately
GOLDEN, Colo., Feb. 03, 2025 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial (“Safe Harbor” or the “Company”) (Nasdaq: SHFS), a fintech leader in facilitating financial services and credit facilities to the regulated cannabis industry, announced today that it has entered into a Letter Agreement with Partner Colorado Credit Union (“PCCU”) related to its Senior Secured Promissory Note (the “Note”), whereby PCCU has agreed to temporarily pause receipt of principal payments due in February and March 2025, while the parties engage in discussions regarding a potential modification of the Note. The Company is working towards finalizing a modification within the two-month period, although there is no assurance that an agreement will be reached.
“This Letter Agreement represents PCCUs commitment to work with us as we develop new solutions to capitalize on, scale and expand our service offerings,” said Terry Mendez, co-CEO of Safe Harbor Financial. “PCCU’s willingness to engage in these discussions reflects our longstanding relationship. The temporary pause in principal payments is expected to improve our liquidity by approximately
About Safe Harbor
Safe Harbor is among the first service providers to offer compliance, monitoring and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. 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 decade, Safe Harbor has facilitated more than
Cautionary Statement Regarding Forward-Looking Statements
Certain information contained in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. 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 and historical performance; new product and service offerings Safe Harbor may introduce in the future; the impact volatility in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings that may be instituted against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future. 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. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor’s filings with the U.S. Securities and Exchange Commission. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contact Information
Safe Harbor Investor Relations
ir@SHFinancial.org
KCSA Strategic Communications
Ellen Mellody
safeharbor@kcsa.com
FAQ
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