SHF Holdings, Inc., d/b/a/ Safe Harbor Financial SHFS, announced that Partner Colorado Credit Union has agreed to allow the company to defer its initial cash payments to PCCU, for a period of six months.
"I am grateful for PCCU's continued support and trust in our relationship. Not only does the deferral of payment demonstrate their confidence in our business, it affords us increased flexibility and the wherewithal to execute on an aggressive growth strategy that will expand service options to the cannabis industry and position Safe Harbor to scale nationally at a faster pace with new services and offerings," stated Sundie Seefried, founder and CEO of Safe Harbor. "Safe Harbor is building an end-to-end platform to meet the financial needs of cannabis-related businesses, and is paving the way to becoming the premier financial services platform to the cannabis industry."
According to the terms of the business combination, Safe Harbor agreed to pay approximately $56.9 million of cash proceeds to PCCU, of which $21.9 million would be payable on December 15, 2022. The remaining $35.0 million would be due in six quarterly installments of $6.4 million. Under the terms of the forbearance agreement, PCCU and Safe Harbor have acknowledged their mutual desire to ensure the success of Safe Harbor, and to compromise permanently and settle the payment terms of the deferred obligation.
"As a partner and shareholder, we are fully supportive and excited for Safe Harbor's next steps as a publicly listed company. As this has been a longer than expected process, and the industry as a whole now faces a somewhat stagnant market that is placing pressure on raising capital, we want to be as supportive as possible in assisting Safe Harbor to advance upon a number of new growth opportunities," stated Doug Fagan, CEO of PCCU.
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