GOLDEN, Colo. – SHF Holdings, Inc., which does business as Safe Harbor Financial and which began its life as a CUSO providing financial services and credit facilities to the regulated cannabis industry, said it has regained compliance with a Nasdaq listing rule that requires at least $2.5 million of shareholders’ equity.
According to the company, it completed a series of recapitalization transactions on Sept. 30 that raised $6.8 million in new capital and eliminated $18.8 million of its debt.
“The company is now essentially debt free and is now equipped with capital to execute on its growth strategy,” SHF Holdings said in a statement, adding the financing was led by certain accredited investors, with company management and members of the board participating in the financing.
“The recapitalization provides substantial operational flexibility for management to execute on its strategic plan,” the company said.
CUSO Sold to SPAC
As the CU Daily reported earlier here, SAFE Harbor Financial, which began as a CUSO of Partner Colorado Credit Union before being sold as a fintech, in March successfully negotiated a favorable debt modification with Partner Colorado.
According to the company, the agreement included a two-year interest-only period, covering February and March 2025, the two months previously granted. Safe Harbor was a pioneer in providing financial services to cannabis companies when it was launched in 2015 and most financial institutions wouldn’t touch the industry due to fear of federal drug laws.
In 2022, Partners Colorado sold the CUSO to a special purpose acquisition company (SPAC), which was publicly traded, for $185 million ($70 million in cash and $115 million in stock).
Safe Harbor, however, reported a $35 million loss for 2022. In March of 2023, CPCU reversed much of its 2022 gain on the sale of the CUSO, resulting in a loss of $41 million. It later began restructuring the transaction.
For 2024, the $623-million Partner Colorado reported it was back in the black, posting $1.62 million in net income and net worth of 13.22%, according to its 5300.
Focus On Compliance
SHF Holding said in its statement that since the Board selected Terry Mendez as CEO in February 2025, the company has been focused on regaining Nasdaq listing compliance, addressing the company’s liquidity challenges, and positioning the company for long-term strategic success.
“The board of directors and executive management have been restructured with a new strategic vision, more than $3 million in annualized run rate costs have been eliminated, and management has now secured the company’s ability to maintain its Nasdaq listing while significantly improving its liquidity position and capital structure,” it said in a statement.
The transactions are detailed in the Company’s 8-K filings with the Securities and Exchange Commission on Sept. 23, 2025 and Oct. 3, 2025. The company also announced that it has established a $150 million equity line of credit (“ELOC”), with the ability to expand the ELOC to $500 million, subject to market conditions, share price requirements, and other conditions as detailed in the Company’s SEC filings.
‘Repositioned for Success’
“Over the last eight months, we have been laser focused on three critical objectives: retaining our Nasdaq listing, addressing our capital structure and liquidity challenges, and developing a strategy to grow through enhanced service offerings for our financial institution customers and cannabis-related business clients,” Mendez said in a statement. “We have eliminated $19 million in debt while significantly cutting costs, and raised nearly $7 million in new cash. We believe we have positioned Safe Harbor for long term strategic success.”
