Safe Harbor Acquires Cannabis Fintech Platform Abaca – SHF Hldgs (NASDAQ:SHFS)

Safe Harbor Acquires Cannabis Fintech Platform Abaca – SHF Hldgs (NASDAQ:SHFS)

SHF Holdings, Inc., d/b/a/ Safe Harbor Financial SHFS closed the acquisition of Rockview Digital Solutions, Inc, d/b/a Abacaa financial technology platform focused on serving the cannabis industry.

The acquisition increases Safe Harbor’s customer base to include more than 1,000 unique escrow accounts in 40 states and US territories; add Abaca’s fintech platform to Safe Harbor’s existing technology; increases Safe Harbor’s financial institution customer relationships and access to balance sheet capacity of five unique financial institutions strategically located throughout the United States; increases Safe Harbor’s estimated monthly income 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 premier financial services and financial technology experts.

Sundie Seefriedfounder 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 world class in financial cannabis technology Abaca’s comprehensive banking and financial technology platform provides cannabis businesses with a full suite of financial services, including compatible bank accounts, financial management and payment capabilities, enabling us to continue on our path to becoming a one-stop shop for cannabis banking solutions. “

The consideration for the transaction goes to the Abaca shareholders $30 million in cash and stock. The share consideration consists of 2.1 million shares at closing and $12.6 million in shares at the 1-year anniversary of closing based on a 10-day VWAP. The cash consideration consists of $3 million upon closing and $3 million on each of the first and second anniversaries of closing.

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Price action

Safe Harbor stock was trading 10.36% lower at $3.46 per share at time of writing on Wednesday morning.

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Photo: Benzinga; Sources: courtesy of geralt, lindsayfox via Pixabay

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