Northern Lights Acquisition Corp. (NASDAQ:NLIT) a special purpose acquisition corporation, and SHF, LLC d/b/a/ Safe Harbor Financial, a leading financial services provider to the cannabis industry, have entered into a redemption backstop arrangement in the form of an OTC equity prepaid forward transaction agreement for up to $50 million with Midtown East Management NL LLC. Midtown East has agreed to not redeem any public shares it purchases in connection with the planned business combination. Northern Lights anticipates that the shares purchased in connection with the agreement will help ensure the maximum redemption threshold condition in the business combination agreement will be met.
The redemption backstop arrangement is in addition to the $60 million PIPE commitment from certain accredited investors previously announced on February 14, 2022.
