GOLDEN, Colo.–Safe Harbor Financial, the one-time CUSO of Partner Colorado Credit Union that was created to serve cannabis businesses before being spun off, told shareholders the agreement it recently reached with PCCU to renegotiate debt now positions it for growth.

Safe Harbor Financial went public in a SPAC before its value crashed significantly, leading to losses for its one-time parent credit union, which still holds a stake.

SHF Holdings, Inc., d/b/a Safe Harbor Financial CEO, Terry Mendez said in its letter to shareholders that his background as a cannabis industry operator and business transformation executive has given him “firsthand insight into the complex challenges that cannabis-related businesses (CRB) navigate daily. This experience, combined with my vision to capitalize on Safe Harbor’s core strengths will enable us to develop innovative financial solutions that directly address cannabis industry pain points.”

Mendez said he believes Safe Harbor has a tremendous opportunity to further monetize its position as a fintech leader providing financial services and credit facilities to the regulated cannabis industry, by potentially offering a broad array of services that address needs beyond bank services.

He further stated the now 10-year-old company has now surpassed $25 billion in processed cannabis-related funds through its network of partner banks, and that the financial institution(s) that have leveraged our compliance program have successfully navigated over 16 federal or state regulator exams. 

Debt Renegotiated

As The CU Daily reported earlier, Medez noted Safe Harbor has negotiated what he called a “highly favorable debt modification with Partner Colorado Credit Union (PCCU)” that includes a two-year interest-only period, with the two months already granted, which “unlocks more than $6 million in cash that would have otherwise gone to principal amortization over the next two years.”

“Additionally, we have secured an extension of the due date, now set for October 2030, while maintaining an interest rate of 4.25%,” Mendez wrote. “PCCU is one of our largest shareholders, a partner financial institution and the note holder. By agreeing to this debt modification, I believe that PCCU recognizes that stock appreciation will contribute to the success of its members, when compared to just principal repayment. This debt modification reflects PCCU’s confidence in Safe Harbor’s strategy and reinforces our ability to invest in growth while maintaining a strong operational foundation…”

Menez further noted that as part of its effort to work towards listing compliance with Nasdaq, on Feb. 21, 2025 the company filed a definitive proxy statement with the SEC asking shareholders to consider and vote upon a proposal to approve an amendment to affect a reverse stock split.

The Future of Safe Harbor

“My long-term vision is clear: Safe Harbor will transform from a specialized banking services provider into a multi-faceted FinTech,” Mendez stated. “By leveraging our trusted industry relationships, deep regulatory expertise and by making innovative technology investments, we expect to create greater value for our CRB clients, attract additional partner financial institutions and unlock new growth opportunities for our shareholders.”