SHF Holdings, Inc. (NASDAQ:SHFS), doing business as Safe Harbor Financial, announced on Wednesday the closing of a $500,000 loan to PI 51st Avenue, LLC, a subsidiary of Pioneer Interests, Inc, doing business as Natty Rems, LLC.
This loan is offered under the Cannabis Resource Optimization Program (CROP) and facilitated through partnerships with the Collective Clean Energy Fund (CCEF) and Partner Colorado Credit Union (PCCU).
Why It Matters
The loan proceeds will support energy-efficient upgrades at PI 51st Avenue's cultivation and processing facility in Denver, Colorado.
PI 51st Avenue plans to invest in energy-saving lighting and other essential equipment, advancing operational efficiency and sustainability in cannabis production.
The partnership leverages resources from CCEF, a nonprofit focused on clean energy financing, and PCCU, to offer competitive loan terms to PI 51st Avenue.
By utilizing a cash collateral arrangement and an interest rate reduction agreement from CCEF, the loan significantly lowers borrowing expenses for PI 51st Avenue. This initiative highlights Safe Harbor's dedication to promoting sustainable practices in the cannabis industry.
Read Also: Marijuana Banking Innovator Exits $3.1M Loan, Collects Over $200K In Accrued Interest
"Through partnerships like these, Safe Harbor Financial is leading the way in providing cannabis businesses with tailored financing solutions that promote both industry growth and sustainability," said Sundie Seefried the company's CEO. "Our collaboration with CCEF and PCCU exemplifies our ability to access resources from both nonprofit and financial institutions to offer cost-effective, environmentally conscious financing within the cannabis sector, setting a benchmark for responsible lending."
Recent Moves
Safe Harbor recently reported a significant turnaround in the third quarter of 2024, achieving a net income of $354,000 – a stark improvement from the $748,000 loss in the same quarter of 2023. However, total revenue declined by 20%, dropping from $4.3 million to $3.5 million.
"Our strategic priorities focused on innovation, operational excellence, and client service," Seefried said in Nov. "We delivered strong loan interest income growth and significantly improved net income while maintaining disciplined expense management."
In October, the company issued a $1.07 million secured credit facility to a Missouri-based cannabis operator, marking the first tranche in a larger $5 million commitment designed to refinance existing senior debt. The loan was backed by a portfolio including four dispensaries and a manufacturing facility, though the name of the borrower was not disclosed.
Read Next:
