Colorado-based marijuana finance company SHF Holdings, which does business as Safe Harbor Financial, agreed to settle its $64.7 million debt with Partner Colorado Credit Union.
Under the agreement, SHF Holdings will resolve the debt in exchange for a five-year, $14.5 million senior secured note with a 4.25% interest rate as well as 11.2 million Class A common stock shares of the company.
Partner Colorado Credit Union (PCCU) was Safe Harbor’s parent company before Safe Harbor went public on the Nasdaq through a special purpose acquisition company last fall.
Safe Harbor owed PCCU the funds as part of that deal.
“A testament to the strong business we have built, we believe this Agreement reflects our strategic partner’s confidence in our ability to execute our long-term growth plans and build shareholder value,” Safe Harbor CEO Sundie Seefried said in a statement.
“Importantly, this restructuring of our balance sheet removes previous financial constraints on our business, enabling us to service the current portion of all our long-term debt while better positioning Safe Harbor to pursue a variety of growth opportunities.”