Marijuana financier Safe Harbor pauses promissory note payments
Marijuana industry finance company SHF Holdings, doing business as Safe Harbor Financial, is seeking to modify its financial agreement with Partner Colorado Credit Union.Under its agreement with the credit union, Safe Harbor will “temporarily pause” principal payments in February and March related to a senior secured promissory note as the parties negotiate a new deal, according to a Monday news release.
ADVERTISEMENT “The temporary pause in principal payments is expected to improve our liquidity by approximately $510,000,” Terry Mendez, co-CEO of Safe Harbor, said in a statement.Mendez is slated to become sole CEO after the retirement of Sundie Seefried, an industry pioneer in cannabis safe banking.
Colorado-based Safe Harbor eliminated $1.2 million of indemnity liability in January through a four-year extension and modification of its agreement with Partner Colorado Credit Union.As a result, Safe Harbor will no longer record a loan loss reserve on its income statement.
ADVERTISEMENT Those two financial moves came only weeks after Safe Harbor said it had surpassed $25 billion in processed cannabis-related funds through partner banks.The company said it serves more than 600 cannabis clients in 40-plus states.
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