Safe Harbor Financial resolves $68.6 million in debt obligations

Chicago, April 17 – SHF Holdings, Inc., which does business as Safe Harbor Financial, announced that it has “resolved” $68.6 million in debt obligations since the beginning of the year, according to a press release.

The debt was incurred in relation to its go-public transaction.

The company has resolved more than 60% of all the outstanding debt reported in its 2022 audited financial results.

The debt resolution included agreements Safe Harbor entered into with Partner Colorado Credit Union.

In March, the company announced that it entered into agreements with Partner Colorado, the company’s largest stockholder, to settle $64.7 million deferred payables owing to Partner Colorado.

In exchange for the resolution of that $64.7 million owed from the Sept. 28, 2022 business combination, Safe Harbor issued a $14.5 million senior secured note with a 4.25% interest rate and a five-year tenor and 11.2 million shares of class A common stock of the company.

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.

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. The company is based in Golden, Colo.

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