Safe Harbor Shares Trading Higher On Plans To Acquire Cannabis Fintech Platform Abaca

SHF Holdings, Inc., d/b/a/ Safe Harbor Financial SHFS, has entered into an agreement to acquire Rockview Digital Solutions, Inc d/b/a Abaca, for $30 million.

Founded in 2017, Abaca works with its FDIC-insured bank partners to enable traditional banking services for operators ranging from single dispensaries to multi-state and national operators. Abaca's people, processes, and technology provide a complete cannabis solution to sponsor financial institutions, managing their regulatory risk at scale. This enables Abaca to provide cannabis businesses a full suite of specialized financial and treasury services available to the industry via its secure, digital platform.

Combining Safe Harbor's wide range of financial services and Abaca's fintech and payment solutions will create comprehensive and streamlined banking solutions for cannabis operators. The enhanced Safe Harbor fintech platform will now offer operators desktop and mobile banking, treasury management, payment processing, cash handling, logistics, and a new payroll service launching later this quarter.

Dan Roda, co-founder and CEO of Abaca, will become executive vice president and chief operating officer of Safe Harbor; and Abaca co-founder and president Brian Bauer, a fintech expert, will serve as chief revenue officer of the company.

The transaction is structured to provide Abaca shareholders with $3 million cash at close and $8.4 million in common stock based on the 10-day VWAP of Safe Harbor common stock. At the 1-year anniversary, the company will pay an additional $3 million in cash and $12.6 million in Safe Harbor common stock based on the 10-day VWAP preceding the 1-year anniversary. Upon the 2-year anniversary, there will be a final cash payment of $3 million in cash. The transaction is expected to close this quarter, subject to regulatory approvals and other customary closing conditions.

Price Action

Safe Harbor shares were trading 7.95% higher at $3.26 per share at the time of writing Monday morning.

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Photo: Benzinga; Sources: courtesy of jarmoluk and lindsayfox via Pixabay

Related News

Safe Harbor To Delay Initial Payments To Partner Colorado Credit Union

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.