Payroll Boost improves operator liquidity and creates multiple new revenue opportunities for Safe HarborDENVER, Dec. 09, 2025 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a provider of banking, lending, and financial services to the legal cannabis industry, announced that Canopy HR—one of the largest payroll-service providers in the cannabis sector—selected Safe Harbor to support nearly all of its cannabis payroll banking operations. Th ...

Core Insights - Safe Harbor has launched the cannabis industry's first comprehensive financial solutions platform aimed at improving access to capital, operational efficiency, and long-term stability for cannabis operators [1][2] Group 1: Financial Solutions Overview - The platform integrates banking, borrowing, operational support, and growth services tailored for the cannabis industry [1][2] - Safe Harbor continues to provide compliant financial access, including secure accounts, digital tools, payment support, and detailed reporting for audit and regulatory needs [3] - The lending program has been expanded to offer more flexible options for established cannabis operators, facilitating greater capital flow into the sector [4] Group 2: Operational and Advisory Services - Safe Harbor now provides operational support services such as bookkeeping, payroll, cash management, and HR, among others [5] - The platform includes strategic finance and advisory services, including fractional CFO support, budgeting, valuations, and M&A support [5][6] - These solutions allow cannabis businesses to strengthen their finance teams or utilize a fully outsourced financial solution for better clarity and control [6] Group 3: Company Evolution and Market Position - Under CEO Terry Mendez, Safe Harbor has transformed from a single-service provider to a multi-service financial platform, aiming to become the "SoFi of cannabis" [7] - The company has achieved significant milestones in 2025, including the launch of the first Fully Managed Cannabis Banking Program for financial institutions [7] - Safe Harbor has facilitated over $26 billion in cannabis-related transactions across 41 states and territories, reinforcing its position as a leading financial partner in the cannabis industry [10]

Core Viewpoint - Safe Harbor has launched the cannabis industry's first comprehensive financial solutions platform aimed at enhancing banking, borrowing, operational support, and growth for cannabis operators [1][2][7] Group 1: Financial Solutions Overview - The platform integrates key financial functions under one brand, addressing the broader financial health needs of cannabis operators who face complex regulations and limited access to financial support [2][4] - Safe Harbor continues to provide compliant banking access, including secure accounts, digital tools, payment support, and detailed reporting for regulatory needs [3][10] Group 2: Borrowing and Lending - The lending program has been expanded to offer more flexible options for established cannabis operators, facilitating greater capital flow into the sector [4][6] - Safe Harbor will assist financial institutions in reselling cannabis-related loans and managing portfolio risk [4] Group 3: Operational Support - The platform now includes operational and financial support services such as bookkeeping, payroll, cash management, and HR services tailored for the cannabis industry [5][6] - Strategic finance and advisory services are also offered, including fractional CFO support, budgeting, and M&A support [5][6] Group 4: Company Evolution and Milestones - Under CEO Terry Mendez, Safe Harbor has transformed from a single-service provider to a multi-service financial platform, aiming to become the "SoFi of cannabis" [7] - The company has achieved significant milestones in 2025, including the launch of the Fully Managed Cannabis Banking Program for financial institutions [7][10] - Safe Harbor has facilitated over $26 billion in cannabis-related transactions across 41 states and territories [9][10]

Core Insights - Safe Harbor Financial, a fintech platform for the cannabis industry, is set to present at the Trickle Research Microcap Conference on November 13, 2025, highlighting its achievements and growth strategy under CEO Terry Mendez [1][2][3] Company Achievements - Safe Harbor has resolved near-term liquidity issues by completing a $24 million recapitalization, which eliminated $19 million in debt [6] - As of September 30, 2025, the company reported $6.8 million in cash, sufficient to fund operations for the next 12 months [6] - The average monthly deposit balances increased to $108 million, reflecting a 6% quarter-over-quarter growth and a 3% year-over-year decline [6] - The number of average active accounts rose by 2% quarter-over-quarter and 4% year-over-year, reaching 774 accounts [6] - Safe Harbor generated a net income of $179,508, or $0.06 per diluted share, for the three months ended September 30, 2025 [6] Strategic Direction - CEO Terry Mendez will discuss Safe Harbor's new growth strategy and the impact of regulatory changes on the cannabis financial services landscape [3][4] - The company aims to scale its platform and expand services to deliver long-term value across the cannabis finance ecosystem [4]

Revenue and Income - Total revenue for the three months ended September 30, 2025, was $1.83 million, a decrease of 47.3% compared to $3.48 million in the same period of 2024[203]. - Account fee income for the three months ended September 30, 2025, was $963,098, down 41.5% from $1.65 million in 2024[203]. - Loan interest income decreased by 61.9% to $510,754 for the three months ended September 30, 2025, compared to $1.34 million in 2024[203]. - Other income for the three months ended September 30, 2025, increased by 660.2% to $1,396,754 compared to $183,745 in 2024, primarily reflecting financing-related transactions[228]. - For the three months ended September 30, 2025, the company reported a net loss of $179,508 compared to a net income of $353,817 for the same period in 2024[243]. - Adjusted EBITDA for the three months ended September 30, 2025, was $(620,478), a decrease from $764,285 in the same period of 2024[243]. Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2025, were $3.05 million, a reduction of 7.7% from $3.31 million in 2024[213]. - Compensation and employee benefits decreased by 7.8% to $1.70 million for the three months ended September 30, 2025, primarily due to a reduction in headcount[217]. - General and administrative expenses decreased by 7.9% to $856,389 for the three months ended September 30, 2025, compared to $929,406 in 2024[219]. - The Company has implemented cost-reduction measures, resulting in a $1.0 million increase in non-cash stock-based compensation year over year[214]. - The Company expects the full effect of its cost-containment initiatives to become more evident in 2026[216]. - General and administrative expenses decreased by $0.6 million, or 20.9%, for the nine months ended September 30, 2025, primarily due to a $0.5 million reduction in intangible asset amortization[221]. Financial Position and Cash Flow - As of September 30, 2025, the company had cash and cash equivalents of $0.9 million and no material debt outstanding, improving liquidity significantly[250]. - The company raised gross proceeds of $6.3 million through Series B Convertible Preferred Stock and Series B Warrant financing during the third quarter[250]. - For the nine months ended September 30, 2025, the company used $2.4 million of cash in operating activities, primarily to fund a net loss of $1.6 million[253]. - The company generated $0.5 million of net cash from financing activities for the nine months ended September 30, 2025, reflecting proceeds from convertible notes and Series B financing[255]. Account and Transaction Activity - Average monthly deposit balance decreased by 2.9% year-over-year to $107,976,219 for the third quarter of 2025[247]. - Average account fees dropped by 34.1% year-over-year to $270,501 for the three months ended September 30, 2025[247]. - The company experienced a 3.9% increase in average active accounts, rising to 774 for the third quarter of 2025[247]. - The company anticipates that improved U.S. economic conditions and potential regulatory easing could lead to higher account balances and transaction activity over time[248]. Debt and Interest - The Company recognized a $3.2 million gain on extinguishment of debt related to the settlement of its FPA obligations, settling $7.3 million by issuing shares valued at $4.0 million[233]. - Interest expense for the three months ended September 30, 2025, increased by $0.1 million due to non-cash interest expense related to convertible notes issued in September 2025[231]. - There was no credit loss expense for the three- and nine-month periods ended September 30, 2025, compared to an expense of $0.0 million and a benefit of $0.2 million in the comparable 2024 periods[227]. Hosting and Professional Services - Total hosting-related fees increased by $0.04 million in 2025, reflecting a $0.18 million increase in account hosting fees offset by a $0.10 million decrease in investment hosting fees and a $0.04 million decrease in loan servicing fees[220]. - Account hosting fees for the three months ended September 30, 2025, increased by 146.4% to $322,795 compared to $131,002 in 2024, while total account hosting fees for the nine months increased by 156.6% to $914,539 from $356,369[224]. - Professional services expense increased by $1.2 million, or 85.9%, for the nine months ended September 30, 2025, driven by transition-related legal and advisory costs[226]. Interest Income Allocation - The interest income split under the new loan yield allocation formula is approximately 39% to the Company, with the remainder retained by PCCU[211].

Core Viewpoint - Safe Harbor Financial has successfully regained compliance with Nasdaq listing requirements and has executed a recapitalization strategy that significantly improves its financial position and operational flexibility [1][2][3][6]. Financial Position - The company raised $6.8 million in new capital and eliminated $18.8 million of debt, resulting in a nearly debt-free status [2][6]. - A $150 million equity line of credit (ELOC) has been established, with potential expansion up to $500 million, aimed at funding lending to cannabis-related businesses (CRBs) and expanding its fintech platform [1][5]. Strategic Initiatives - The appointment of Terry Mendez as CEO in February 2025 has led to a focused strategy on regaining Nasdaq compliance, addressing liquidity challenges, and positioning for long-term success [3][6]. - The company has eliminated over $3 million in annualized costs and restructured its Board of Directors and Executive Management to align with a new strategic vision [3][6]. Operational Flexibility - The recapitalization provides substantial operational flexibility, allowing the company to pursue growth opportunities in cannabis banking and lending markets without immediate capital pressure [7]. - The ELOC will enable the company to make accretive deployments that are expected to generate returns exceeding the cost of capital, further strengthening its capital structure [5][7]. Industry Context - Safe Harbor is a leader in providing financial services tailored to the cannabis industry, having facilitated over $26 billion in cannabis-related transactions across 41 states and territories [8].

Core Insights - Safe Harbor Financial, a fintech leader in the cannabis and hemp industries, is participating in the IgniteIt Cannabis Capital and Policy Summit 2025, highlighting the potential impact of federal reforms on capital movement and M&A in the cannabis sector [1][2]. Company Overview - Safe Harbor is a cannabis-exclusive financial platform that has facilitated over $26 billion in cannabis-related transactions across 41 states and territories [3]. - The company offers tailored banking, lending, payments, and business services specifically designed for the cannabis industry, emphasizing compliance and support for operators [3]. Industry Context - The panel discussion at the summit will focus on how federal reforms, such as rescheduling and expanded banking access, could reshape the fragmented cannabis marketplace and unlock capital for consolidation [2]. - The event will gather key stakeholders, including government officials and industry leaders, to discuss the intersection of federal regulation and access to capital in the evolving legal landscape of cannabis [2].

Core Insights - Premarket trading is showing notable activity with early price movements indicating potential opportunities before the market opens [1] Premarket Gainers - Galaxy Payroll Group Limited (GLXG) increased by 39% to $5.34 - Lithium Americas Corp. (LAC) rose by 31% to $7.52 - Senmiao Technology Limited (AIHS) gained 22% to $2.45 - The AES Corporation (AES) saw a 10% increase to $14.53 - Strive, Inc. (ASST) also increased by 10% to $2.77 - Shoulder Innovations, Inc. (SI) rose by 9% to $13.78 - Top KingWin Ltd (WAI) increased by 8% to $3.80 - Southland Holdings, Inc. (SLND) saw a 7% increase to $4.61 - CaliberCos Inc. (CWD) rose by 6% to $4.75 - Mannatech, Incorporated (MTEX) increased by 5% to $10.53 [3] Premarket Losers - Real Messenger Corporation (RMSG) decreased by 16% to $2.01 - Etoiles Capital Group Co., Ltd (EFTY) fell by 14% to $14.45 - Enanta Pharmaceuticals, Inc. (ENTA) dropped by 13% to $10.41 - CollPlant Biotechnologies Ltd. (CLGN) saw an 11% decrease to $2.39 - Fortress Biotech, Inc. (FBIO) declined by 10% to $3.30 - Uni-Fuels Holdings Limited (UFG) fell by 9% to $7.52 - Alset Inc. (AEI) decreased by 9% to $2.30 - JFB Construction Holdings (JFB) saw a 5% decline to $12.20 - SHF Holdings, Inc. (SHFS) dropped by 5% to $6.80 - Phio Pharmaceuticals Corp. (PHIO) decreased by 5% to $2.34 [4]

Group 1 - SHF Holdings, Inc. (NASDAQ:SHFS) has launched the first fully managed cannabis banking program, providing an outsourced operational and compliance platform for financial institutions in the regulated cannabis market [2][3] - The program allows community banks and credit unions to offer compliant cannabis banking services without the need to expand internal teams or take on additional risk, as SHF Holdings will handle client acquisition, onboarding, and compliance [3] - This model aims to protect partner institutions from reputational risks and operational overhead while creating a scalable solution for serving cannabis businesses [3][4] Group 2 - SHF Holdings, Inc. is recognized as one of the best penny stocks, focusing on providing banking, credit, payments, and compliance solutions exclusively to the legal cannabis industry across the U.S. [4] - There is significant hedge fund interest in SHF Holdings, contributing to its inclusion in the list of the 10 Best Bank Penny Stocks to Buy [1]

Core Viewpoint - The article discusses the best bank penny stocks to buy, highlighting the impact of anticipated interest rate cuts by the Federal Reserve and the performance of bank shares amid a mixed outlook for the banking sector [1][4]. Economic Context - The Federal Reserve is expected to cut interest rates by at least 25 basis points for the first time in 2025, following three rate cuts in late 2024, with current rates held at 4.25%-4.50% [1]. - U.S. equities have reached record highs, driven by softer labor-market figures and easing inflation, with bank shares performing particularly well [2]. - Small-cap companies, which are heavily reliant on external borrowing, have seen a rally of over 5% since Jerome Powell's remarks at Jackson Hole [2][3]. Banking Sector Performance - The KBW Regional Banking Index (KRX) has returned 10.77% over the past year, while the S&P 500 Banks Index has returned 23.15% year-to-date [2][4]. - Lower interest rates are beneficial for small-cap banks and penny stocks, as they reduce borrowing costs and free up capital for growth [3]. Company Highlights - **CNFinance Holdings Limited (NYSE:CNF)**: - Reported a total loan balance of approximately $1.55 billion, down nearly 30% year-over-year, with interest income declining by 55% to about $57 million [9]. - Registered a net loss of roughly $5.6 million due to an impairment charge but achieved a 103% recovery rate on non-performing loans [10]. - Focuses on micro-credit loan services for small enterprises and aims to stabilize funding channels and manage bad loans effectively [11]. - **SHF Holdings, Inc. (NASDAQ:SHFS)**: - Launched a Fully Managed Cannabis Banking Program, providing an operational and compliance platform for financial institutions serving the cannabis market [12][13]. - This program allows community banks and credit unions to offer compliant cannabis banking without expanding internal teams, thus mitigating reputational and operational risks [13]. - Operates exclusively in the legal cannabis industry, providing banking, credit, payments, and compliance solutions [14]. Methodology for Stock Selection - The list of the best bank penny stocks was curated using the Finviz screener to identify stocks trading under $5, followed by an assessment of hedge fund sentiment using Insider Monkey's database [6].