Safe Harbor Financial pauses principal payments on its Note with PCCU while discussing potential modifications to improve liquidity.
Quiver AI Summary
Safe Harbor Financial (Nasdaq: SHFS), a fintech company serving the regulated cannabis industry, has announced a temporary agreement with Partner Colorado Credit Union (PCCU) that pauses principal payments due on a Senior Secured Promissory Note for February and March 2025. This pause allows both parties to discuss potential modifications to the Note, aiming to finalize changes within the two-month timeframe. Co-CEO Terry Mendez emphasized the importance of this collaboration, noting that it would enhance the company's liquidity by around $510,000. Safe Harbor is recognized for offering compliance and banking services to cannabis-related businesses, having facilitated over $25 billion in deposit transactions across the U.S. and territories with regulated cannabis markets.
Potential Positives
- Safe Harbor Financial has reached an agreement with PCCU to temporarily pause principal payments, which is expected to improve liquidity by approximately $510,000.
- The agreement highlights PCCU's commitment to work collaboratively with Safe Harbor, reflecting a longstanding relationship that may lead to the development of new solutions and service offerings.
- This arrangement provides Safe Harbor with a two-month window to potentially modify financial terms, indicating proactive financial management and negotiation strategies.
- Safe Harbor continues to reinforce its position as a leader in the fintech sector for the regulated cannabis industry, having facilitated over $25 billion in transactions, which underscores strong market presence and experience.
Potential Negatives
- The temporary pause in principal payments, while intended to improve liquidity, signals potential financial instability and reliance on renegotiation rather than solid performance.
- The lack of assurance regarding the successful modification of the Note raises concerns about the company's ability to meet its financial obligations.
- The need for discussions regarding the modification of the Note may indicate underlying issues within the company's financial health and operational strategy.
FAQ
What recent agreement did Safe Harbor Financial announce?
Safe Harbor Financial announced a Letter Agreement with Partner Colorado Credit Union to pause principal payments due in February and March 2025.
How much liquidity will Safe Harbor gain from this agreement?
The temporary pause in principal payments is expected to improve Safe Harbor's liquidity by approximately $510,000.
What is the purpose of the agreement with PCCU?
The agreement aims to facilitate discussions for a potential modification of the Senior Secured Promissory Note.
What services does Safe Harbor Financial provide?
Safe Harbor provides compliance, monitoring, and validation services to financial institutions in the regulated cannabis industry.
How much has Safe Harbor facilitated in deposit transactions?
Over the past decade, Safe Harbor has facilitated more than $25 billion in deposit transactions for cannabis-related businesses.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$SHFS Hedge Fund Activity
We have seen 6 institutional investors add shares of $SHFS stock to their portfolio, and 8 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- BLUE OWL CAPITAL HOLDINGS LP added 1,517,924 shares (+inf%) to their portfolio in Q3 2024, for an estimated $839,867
- GEODE CAPITAL MANAGEMENT, LLC added 48,144 shares (+25.0%) to their portfolio in Q3 2024, for an estimated $26,638
- RENAISSANCE TECHNOLOGIES LLC removed 47,070 shares (-62.2%) from their portfolio in Q3 2024, for an estimated $26,043
- CORIENT PRIVATE WEALTH LLC removed 40,000 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $22,132
- M3F, INC. added 28,596 shares (+0.5%) to their portfolio in Q3 2024, for an estimated $15,822
- VIRTU FINANCIAL LLC removed 15,949 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $8,824
- CITADEL ADVISORS LLC added 13,258 shares (+34.9%) to their portfolio in Q3 2024, for an estimated $7,335
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
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 $510,000.”
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 $25 billion in deposit transactions for businesses with operations spanning more than 41 states and US territories with regulated cannabis markets. For more information, visit
www.shfinancial.org
.
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
[email protected]
KCSA Strategic Communications
Ellen Mellody
[email protected]