Cannabis-related compliance expert Safe Harbor Financial (SHFS) completes SPAC merger with NLIT

Jump to heading Cannabis-related compliance expert Safe Harbor Financial (SHFS) completes SPAC merger with NLIT

Blank check business, Northern Lights Acquisition Corp., completes business combination by acquiring SHF, LLC (Safe Harbor Financial) from Partner Colorado Credit Union. The company is to rename itself SHF Holdings, Inc..

SHF Holdings' Class A Common Stock will begin trading on the Nasdaq Capital Market on September 29, 2022, under the symbol SHFS.

SHF Holdings, Inc. (SHFS), formerly known as Northern Lights Acquisition Corp. (NLIT), a SPAC, announced the completion of its previously disclosed acquisition of SHF, LLC, Safe Harbor Financial (Safe Harbor), a leader in offering services in compliance to financial institutions that are involved in the legal cannabis sector.

As the transaction has been completed, the company’s name has been changed to "SHF Holdings, Inc." Its Class A Common Stock and warrants will remain available for trading on the Nasdaq Capital Market.

On September 28, 2022, SHF Holdings, Inc. also closed a PIPE for $20.45 million in convertible preferred stock and warrants. To compensate for the reduced PIPE amount, Safe Harbor's indirect parent, Partner Colorado Credit Union (PCCU), agreed to a further amendment to the Unit Purchase Agreement, dated February 11, 2022. In this agreement between the Company, 5AK, LLC, the Company's sponsor, Safe Harbor, SHF Holding Co., LLC, the sole member of Safe Harbor, and PCCU, the Seller's parent, to provide for the deferral of approximately $57 million of the $70 million due to the Seller at the closing of the business combination. The increased Deferred Cash Consideration will supply SHF Holdings, Inc. with more cash to aid with its activities post-closing.

"Today marks a significant turning point in Safe Harbor's history. We are overjoyed to have completed this transaction and are excited to continue scaling our company and expanding our services to meet the needs of the cannabis industry in the U.S.." states founder and CEO of Safe Harbor, Sundie Seefried.

Also, "Safe Harbor is well-positioned to become the platform of choice for financial services providers to cannabis operators, thanks to strong leadership from our executive management team, Board of Directors, and support from NLIT's sponsor team.", says Seefried.

"I would like to congratulate and thank all those involved in the transaction, including our passionate and dedicated team," Ms. Seefried concluded. I couldn't be more excited about Safe Harbor's future and the opportunity to expedite our development strategy as a public company."

"With its established leadership position in cannabis-related compliance services and continued growth in its financial institution clients, this is an exciting time for Safe Harbor to become part of a Nasdaq-listed company," said Co-CEO of NLIT, John Darwin, leading up to the closing.

The Company's legal counsel was Nelson Mullins Riley & Scarborough LLP. The Company's placement agent was EF Hutton, a division of Benchmark Investments, LLC. Partner Colorado Credit Union and Safe Harbor were represented by attorneys Donnie Emmi and David Waller.

Jump to heading About the SPAC: Northern Lights Acquisition Corporation

The company was established as a blank check business to execute a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more enterprises.

Jump to heading About Safe Harbor

Safe Harbor is among the first service providers to provide compliance, monitoring, and validation services to financial institutions that provide banking services to cannabis, hemp, CBD, and ancillary operators, thereby making communities safer, driving growth in local industries, and fostering long-term collaborations. Safe Harbor maintains high levels of transparency, accountability, monitoring, reporting, and risk mitigation methods via its financial institution customers, all while satisfying Bank Secrecy Act duties and following FinCEN recommendations on cannabis-related firms. During the past seven years, Safe Harbor have helped clients with the processing of over $12 billion in deposit transactions for clients whose operations span 20 different U.S. states with authorized cannabis markets.

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(ENDI Corp. and its affiliated Registered Investment Advisors do not own a position in SHF Holdings, Inc. as of September 29, 2022.)

Tags: Cannabis; Compliance; SPACs; SPAC news; SPAC; blank check company; IPO; Merger; PIPE; SPAC database