Safe Harbor Financial Successfully Exits $3.1 Million Loan in Default, Collecting 100% of Principal, Plus Over $200,000 in Accrued Interest
July 09 2024 - 8:00AM
SHF Holdings, Inc., d/b/a/ Safe Harbor Financial (“Safe
Harbor” or the “Company”) (NASDAQ: SHFS), a leader in
facilitating financial services and credit facilities to the
regulated cannabis industry, announced today that it successfully
exited a $3.1 million loan that was previously in default. In
addition to the full repayment of the principal, Safe Harbor
received $202,175 in accrued interest, all of which will be
reallocated into its lending and credit line capacity.
Dan Roda, Executive Vice President and Chief
Operating Officer of Safe Harbor Financial, stated, “Safe Harbor
has established a strong lending program that meets the financial
requirements of our clients while generating appropriate risk
adjusted loan interest income for the business. The strength of our
program is our underwriting criteria, which has resulted in only
one non-performing loan over its history. That we recouped the full
value of this loan, plus accrued interest and expenses, not only
validates the balanced approach to our lending program, but it also
significantly improves the overall quality of our loan portfolio
and increases our lending capacity to service our clients’ credit
needs.”
The $3.1 million first-lien loan was originated
in 2021 and secured by Class A industrial real estate in the Denver
metropolitan area. The strength of the underlying fundamentals of
the property helped facilitate a successful exit of the loan,
further demonstrating the soundness of Safe Harbor’s underwriting
approach. This was the only loan in the portfolio in default as of
March 31, 2024.
About Safe Harbor
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, making communities
safer, driving growth in local economies, and fostering long-term
partnerships. Safe Harbor, through its financial institution
clients, implements high standards of accountability, transparency,
monitoring, reporting and risk mitigation measures while meeting
Bank Secrecy Act obligations in line with FinCEN guidance on
cannabis-related businesses. Over the past nine years, Safe Harbor
has facilitated more than $21 billion in deposit transactions for
businesses with operations spanning over 41 states and US
territories with regulated cannabis markets. For more information,
visit www.shfinancial.org.
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 trends in the
cannabis industry, including proposed changes in U.S. and state
laws, rules, regulations and guidance relating to Safe Harbor's
services; Safe Harbor's growth prospects and Safe Harbor's market
size; Safe Harbor's projected financial and operational
performance, including relative to its competitors and loan
performance; new product and service offerings Safe Harbor may
introduce in the future; the impact of recent volatility in the
capital markets, which may adversely affect the price of the
Company's securities; Safe Harbor’s ability to make the same or
similar loans in the future; the outcome of any legal proceedings
that may be instituted against Safe Harbor; other statements
regarding Safe Harbor's expectations, hopes, beliefs, intentions or
strategies regarding the future; and the other risk factors
discussed in Safe Harbor's filings from time to time with the SEC.
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, to risks and uncertainties. These forward-looking
statements involve a number of risks and uncertainties (some of
which are beyond the control of Safe Harbor), 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. These and other risks are discussed in
detail in the periodic reports that Safe Harbor files with the SEC,
and investors are urged to review those periodic reports and Safe
Harbor’s other filings with the SEC, which are accessible on the
SEC’s website at www.sec.gov, before making an investment decision.
Safe Harbor assumes no obligation to update its forward-looking
statements except as required by law.
Contact Information
Safe Harbor MediaNick Callaio, Marketing
Manager720.951.0619Nick@SHFinancial.org
Safe Harbor Investor Relationsir@SHFinancial.org
KCSA Strategic CommunicationsPhil Carlsonsafeharbor@kcsa.com
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