Core Viewpoint - The potential federal rescheduling of cannabis to Schedule III and the passage of the SAFER Banking Act are expected to positively impact Safe Harbor Financial's business and its clients [2]. Company Overview - Safe Harbor Financial is a fintech leader providing financial services and credit facilities specifically to the regulated cannabis industry, having facilitated over $26 billion in cannabis-related transactions across 41 states and territories [3]. - The company operates a proprietary Cannabis Banking Solutions™ Platform and partners with regulated financial institutions to support cannabis operators in managing their financial operations [3]. Impact of Rescheduling and SAFER Banking Act - Rescheduling cannabis to Schedule III is anticipated to benefit Safe Harbor by allowing financial institutions to service the cannabis industry more effectively, thus increasing the income based on managed assets [2][5]. - The SAFER Banking Act could expand the total addressable market for Safe Harbor, encouraging over 4,700 state-chartered banks and credit unions to reconsider banking cannabis-related businesses [5]. - Under Schedule III, the 280E taxes currently paid by Safe Harbor's clients would be replaced by a normal tax regime, potentially improving clients' retained cash flows [5]. Financial Implications - The rescheduling and potential legislation could enhance Safe Harbor's investment income and loan capacity, driven by increased client balances from cannabis-related businesses [5]. - Interest expenses for cannabis-related businesses would become tax-deductible, reducing their after-tax cost of debt and enabling them to borrow more from lenders like Safe Harbor [5].