SHF Holdings, Inc., d/b/a/ Safe Harbor Financial SHFS closed the acquisition of Rockview Digital Solutions, Inc, d/b/a Abaca, a financial technology platform focused on serving the cannabis industry.
The acquisition increases Safe Harbor's customer base to include more than 1,000 unique depository accounts across 40 states and U.S. territories; adds Abaca's fintech platform to Safe Harbor's existing technology; increases Safe Harbor's financial institution client relationships and access to balance sheet capacity to five unique financial institutions strategically located across the United States; increases Safe Harbor's projected monthly revenue by approximately 40%; increases Safe Harbor's lending capacity; and nearly doubles Safe Harbor's team, adding to the existing talent pool of the cannabis industry's foremost financial services and financial technology experts.
Sundie Seefried, founder and CEO of Safe Harbor, stated: "The acquisition of Abaca is a critical first step in Safe Harbor's ongoing strategy to identify companies that can expand our market share and deposit base for our financial institution clients, increase lending capacity, and complement our existing technology platform to be first in class in cannabis financial technology. Abaca's comprehensive banking and financial technology platform provides cannabis businesses with a full suite of financial services including compliant bank accounts, treasury management, and payment capabilities, enabling us to continue on our path of becoming a one-stop-shop for cannabis banking solutions."
The consideration for the transaction provides the Abaca shareholders with $30 million of cash and stock. The stock consideration consists of 2.1 million shares at closing and $12.6 million in shares at the 1-year anniversary of the closing based on a 10-day VWAP. The cash consideration consists of $3 million at closing and $3 million at each of the first and second anniversaries of the closing.
Price Action
Safe Harbor shares were trading 10.36% lower at $3.46 per share at the time of writing Wednesday morning.
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