The loan represents the expansion of Safe
Harbor's senior secured lending program providing capital at
commercial rates to proven cannabis operators
ARVADA,
Colo., June 7, 2022 /PRNewswire/ -- SHF, LLC
d/b/a/ Safe Harbor Financial ("Safe Harbor" or the
"Company"), a leading financial services provider to the
cannabis industry, today announced the closing of a $5 million senior secured loan to Solar
Cannabis Co., an established vertically-integrated cannabis
operator headquartered in Somerset,
Massachusetts. Solar Cannabis will use the funds to further
accelerate its growth.
This transaction marks the evolution of Safe Harbor's senior
secured lending program, which was established to provide loans to
cannabis operators in states in which cannabis is legal. Solar
Cannabis' loan is the first extended by Safe Harbor outside of its
home state of Colorado. The terms
of the loan were not disclosed.
Safe Harbor, through its predecessor entity, began offering loan
services in 2020 with the buildout of its commercial lending
program in late 2021 to help cannabis operators overcome their
historic reliance on expensive, non-traditional forms of capital.
Since initiating the program, the Company has developed an
actionable pipeline of approximately $500
million across nine states from both new as well as existing
clients.
"We are excited to provide this extension of credit to Solar
Cannabis. We believe, based on our due diligence process, the
company has opportunities for continued growth," said Paul Penney, Chief Investment Officer of Safe
Harbor. "Safe Harbor is ushering in a new wave of commercial
capital for the cannabis industry with leading compliance and
underwriting alongside a low cost of capital advantage."
Sundie Seefried, Founder and CEO
of Safe Harbor, stated, "Our senior secured lending program is a
key part of our efforts to increase our services to our clients. We
are solving the cannabis industry's most significant problem –
unreasonable costs of capital that meaningfully inhibit growth. We
want to make sure those terms are over for our clients, and the
industry has a reasonable lending environment moving forward."
Edward Dow, CEO of Solar
Cannabis, commented, "Obtaining this loan from Safe Harbor gives us
the resources we need to continue expanding our business in
Massachusetts. It was a pleasure
working with experienced cannabis executives Paul and Sundie who
understand thoroughly the need for competitive rates and flexible
structuring for cannabis operators."
Safe Harbor was formed to provide an unmet need – compliant
banking and financial services to the rapidly expanding U.S.
cannabis industry. Over the past seven years (including operations
conducted through its parent, Partner Colorado Credit Union), the
Company has processed more than $12
billion in transactions, including approximately
$3.6 billion in 2021.
Safe Harbor has grown to nearly 600 clients spanning 20 states,
serving both the medical and recreational cannabis markets. As
legislative reform unfolds in the U.S., the Company is uniquely
positioned as the trusted, leading standard for cannabis financial
services.
In February 2022, Safe Harbor
announced the signing of a business combination agreement with
Northern Lights Acquisition Corp. (Nasdaq: NLIT), a special purpose
acquisition corporation.
About Safe Harbor
Safe Harbor is one of the first financial services providers to
offer reliable access to banking solutions for cannabis, hemp, CBD,
and ancillary operators, making communities safer, driving growth
in local economies, and fostering long-term partnerships. Safe
Harbor, through its partners, serves the regulated cannabis
industry and implements the highest standard of accountability,
transparency, monitoring, reporting, and risk mitigation measures
while meeting BSA obligations in line with FinCEN guidance on CRBs.
Over the past seven years, Safe Harbor has processed over
$12 billion in transactions with
operations spanning 20 states with regulated cannabis markets. For
more information, visit www.shfinancial.org.
About Solar Cannabis Co.
Based in Somerset, MA. Solar is
a 70,000 square foot marijuana cultivation facility coupled with
on-site and off-site dispensary storefronts that supply both
medical and recreational cannabis products. Solar is organized as a
MA. domestic for-profit corporation and has secured a Certificate
of Registration from the MA. Cannabis Control Commission to operate
in the Commonwealth. Developed behind the mantra Elevated. By
Design™, Solar is unlike any cannabis manufacturing facility in
America. Solar's key differentiators are its production
architecture, which is centered around the facility's innovative
design that utilizes green infrastructure and microgrid assets
comprising a combination of solar arrays and high-efficiency
combined-heat & power generation units. These green concepts
enable Solar to produce sustainable cannabis both by lowering its
overall energy profile as well as by generating all of its own
clean power. For more information,
visit www.solarthera.com.
Cautionary Statement Regarding
Forward Looking Statements
Certain statements contained in this press release constitute
"forward-looking statements" within the meaning of federal
securities laws. Forward-looking statements may include, but are
not limited to, statements with respect to (i) trends in the
cannabis industry, including changes in U.S and state laws, rules,
regulations and guidance relating to Safe Harbor's services; (ii)
Safe Harbor's growth prospects and Safe Harbor's market size; (iii)
Safe Harbor's projected financial and operational performance,
including relative to its competitors; (iv) new product and service
offerings Safe Harbor may introduce in the future; (v) the proposed
business combination, including the implied enterprise value, the
expected post-closing ownership structure and the likelihood and
ability of the parties to successfully consummate the potential
transaction; (vi) the risk that the proposed business combination
may not be completed in a timely manner or at all, which may
adversely affect the price of Northern Lights' securities; (vii)
the failure to satisfy the conditions to the consummation of the
proposed business combination, including the approval of the
proposed business combination by the stockholders of Northern
Lights; (viii) the effect of the announcement or pendency of the
proposed business combination on Northern Lights' or Safe Harbor's
business relationships, performance, and business generally; (ix)
the outcome of any legal proceedings that may be instituted against
Northern Lights or Safe Harbor related to the definitive unit
purchase agreement or the proposed business combination; (x) the
ability to maintain the listing of Northern Lights' securities on
the Nasdaq Capital Market; (xi) the price of Northern Lights'
securities, including volatility resulting from changes in the
competitive and highly regulated industry in which Safe Harbor
plans to operate, variations in performance across competitors,
changes in laws and regulations affecting Safe Harbor's business
and changes in the combined capital structure; (xii) the ability to
implement business plans, forecasts, and other expectations after
the completion of the proposed business combination, and identify
and realize additional opportunities; and (xiii) other statements
regarding Safe Harbor's and Northern Lights' 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, are subject to risks and uncertainties. You should
carefully consider the risks and uncertainties described in the
"Risk Factors" section of Northern Lights' registration statement
on Form S-1, any proxy statement relating to the proposed business
combination, which is expected to be filed by Northern Lights with
the SEC, other documents filed by Northern Lights from time to time
with SEC, and any risk factors made available to you in connection
with Northern Lights, Safe Harbor, and the transaction. These
forward-looking statements involve a number of risks and
uncertainties (some of which are beyond the control of Safe Harbor
and Northern Lights), and other assumptions, that may cause the
actual results or performance to be materially different from those
expressed or implied by these forward-looking statements.
Additional Information about the
Business Combination and Where to Find It
The proposed business combination involving Northern Lights and
Safe Harbor will be submitted to the stockholders of Northern
Lights for their consideration. Northern Lights has filed a
preliminary proxy statement on Schedule 14A with the SEC on
April 15, 2022 (as amended
thereafter, the "Preliminary Proxy Statement") to be distributed to
the stockholders of Northern Lights in connection with Northern
Lights' solicitation for proxies for the vote by the stockholders
of Northern Lights connection with the proposed business
combination and other matters as described in the Preliminary Proxy
Statement. After the Preliminary Proxy Statement has been cleared
for dissemination by the SEC, Northern Lights will mail a
definitive proxy statement (the "Definitive Proxy Statement") and
other relevant documents to its stockholders as of the record date
established for voting on the proposed business combination. Before
making any voting decision, the stockholders of Northern Lights and
other interested persons are advised to read, once available, the
Preliminary Proxy Statement and any amendments thereto and, once
available, the Definitive Proxy Statement, along with all other
relevant documents filed or that will be filed with the SEC in
connection with the proposed business combination and Northern
Lights' solicitation of proxies for its special meeting of
stockholders to be held to approve, among other things, the
proposed business combination, because these documents will contain
important information about Northern Lights, Safe Harbor, and the
proposed business combination. Stockholders will be able to obtain
free copies of the Preliminary or Definitive Proxy Statement, once
available, as well as other documents filed with the SEC regarding
the proposed business combination and other documents filed with
the SEC by Northern Lights, without charge, at the SEC's website
located at www.sec.gov or by directing a request to Northern Lights
Acquisition Corporation, 10 East 53rd Street, Suite 3001,
New York, NY, 10022, or by
telephone at (615) 554-0044.
No Offer or Solicitation
This press release relates to a proposed business combination
between Northern Lights and Safe Harbor and does not constitute an
offer to sell or the solicitation of an offer to buy any
securities, or a solicitation of any vote or approval, nor shall
there be any sale of securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction.
Participants in the
Solicitation
Northern Lights and Safe Harbor, and certain of their respective
directors and executive officers, under the rules of the SEC, may
be deemed to be participants in the solicitation of proxies from
Northern Lights' stockholders in favor of the approval of the
business combination. Information about the directors and officers
of Northern Lights and their ownership of Northern Lights Class B
common stock can also be found in Northern Lights' registration
statement on Form S-1 filed with the SEC on June 2, 2021 in connection with its initial
public offering, its Annual Report on Form 10-K for the year ended
December 31, 2021 filed with the SEC
on March 25, 2022, the Preliminary
Proxy Statement, and other documents subsequently filed by Northern
Lights with the SEC. Information about the directors and executive
officers of Safe Harbor, as well as information regarding the
interests of other persons who may be deemed participants in the
transaction, may be obtained by reading the Preliminary Proxy
Statement and the Definitive Proxy Statement regarding the business
combination when it becomes available. Additional information
regarding the interests of these participants will also be included
in the proxy statement pertaining to the business combination if
and when it becomes available. Free copies of this document may be
obtained as described above.
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SOURCE Safe Harbor Financial