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.
About Safe Harbor
Safe Harbor is one of the first financial services providers to offer reliable access to banking solutions for cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships.
About Northern Lights Acquisition Corp.
Northern Lights is a blank check company formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses.
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