Safe Harbor Financial Resolves $68.6 Million in Debt Obligations

Rhea-AI Summary

SHF Holdings, Inc. (NASDAQ: SHFS) announced significant debt resolution achievements, having resolved over $68.6 million since the start of 2023. This represents more than 60% of its total outstanding debt, which was $81.9 million as reported for 2022.

The resolution included a settlement with Partner Colorado Credit Union that accounted for approximately $64.7 million in deferred payables, consisting of cash and stock transactions. The company filed its 10-K NT with the SEC, ensuring its timely filer status.

CEO Sundie Seefried expressed optimism about focusing on growth, both organically and through M&A opportunities, following the successful debt negotiations.

Positive

• Resolved over $68.6 million in debt obligations since 2023.
• Reduced total debt by more than 60%.
• Maintained SEC timely filer status by filing 10-K NT.

Negative

• None.

- Resolved more than $68.6 Million of the debt payables reported as of December 31, 2022 -

- Reduced total debt obligation by more than 60% -

- Files 10-K NT with U.S. Securities and Exchange Commission, maintaining SEC timely filer status -

GOLDEN, Colo., April 17, 2023 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a/ Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a leader in facilitating financial services and credit facilities to the regulated cannabis industry, today announced that, since the beginning of 2023, it has negotiated the resolution of approximately $68.6 million in debt obligations.

“Since the beginning of the year, we have been working hard to resolve the financial complexities associated with, and the debt arising from our go-public transaction,” said Sundie Seefried, Chief Executive Officer at Safe Harbor. “We are pleased to have resolved more than 60% of all of the outstanding debt reported in our recently filed 2022 audited financial results and are looking forward to focusing solely on growing our business both organically and via attractive M&A opportunities.”

The debt resolution includes the previously announced agreements Safe Harbor entered into with Partner Colorado Credit Union (“PCCU”) that resulted in the settlement of the approximately $64.7 million deferred payable owed to PCCU, comprised of $14.5 million in serviceable debt payable at a 4.25% annual interest rate over a five-year period; and 11.2 million shares of Class A common stock in the Company valued at $50,162,549. The remaining approximately $3.9 million in debt was resolved via a payment of $1.7 million in cash and $700,000 in serviceable debt payable at 0% interest over a one-year period.

On April 14, 2023, Safe Harbor filed its audited financial results for the quarter and year ended December 31, 2022 with the U.S. Securities and Exchange Commission (“SEC”), maintaining the Company’s status as a timely filer with the SEC. In this filing, the Company reported $81.9 million in total debt¹ for 2022.

¹ Total debt is defined as the sum of accrued expenses, deferred consideration, due to seller (current portion), deferred consideration (long term), due to seller (long term position) and deferred underwriter fee payable. See Form 10-K, filed with the SEC April 14, 2023.

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. 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 $18 billion in deposit transactions for businesses with operations spanning over 40 states and US territories with regulated cannabis markets. For more information, visit www.shfinancial.org.

Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements'' within the meaning of federal 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, 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 Contact
Safe Harbor Financial
Nick Callaio, Marketing Manager
720.951.0619
Nick@SHFinancial.org

Investor Relations Contact
Mattio Communications
ir@mattio.com

FAQ

What recent debt reduction has SHF Holdings achieved?

SHF Holdings resolved over $68.6 million in debt obligations since the start of 2023, reducing total debt by more than 60%.

How much total debt did SHF Holdings report for 2022?

SHF Holdings reported a total debt of $81.9 million for the year 2022.

What does SHFS plan to focus on after resolving its debt?

SHFS plans to focus on growing its business both organically and through attractive M&A opportunities.

What is the significance of the 10-K NT filing for SHF Holdings?

The 10-K NT filing allows SHF Holdings to maintain its SEC timely filer status, which is important for investor transparency.