Safe Harbor CEO aims to pivot from cannabis lending to fintech

Terry Mendez is implementing sweeping changes at Safe Harbor Financial to diversify its core business and improve its standing as a publicly traded company.The newly appointed CEO, who took over in February after the retirement of Sundie Seefried, wants to transform the business, expanding services for the debanked to exploring lending opportunities outside the cannabis industry.

ADVERTISEMENT His plan to win over shareholders will leverage the financial services firm’s legacy – facilitating more than $25 billion in cannabis-related funds through partner banks – with data gleamed from its business and vast network of clients, lenders and marijuana operators.“We’re not capitalizing on that data,” said Mendez, who wants to explore opportunities in crypto and the gaming industry as well as with ancillary cannabis companies.

“There’s other debanked industries that we can potentially move into.” To execute that strategy and provide more financial flexibility, Safe Harbor modified its debt with Partner Colorado Credit Union a few weeks ago, freeing up $6 million in cash.In a move to maintain a $1 share price minimum requirement on the Nasdaq exchange, where it trades as SHFS, the Colorado-based company initiated a reverse stock split.

Safe Harbor’s board “overwhelmingly approved” the reverse stock split, the CEO said.Mendez issued a letter to shareholders on March 11 outlining his vision to boost financial services for cannabis businesses, strengthen Safe Harbor’s balance sheet and drive long-term value for shareholders.

Later that day, the former cannabis company executive and Deloitte & Touche alum spoke with MJBizDaily about a wide range of issues, including investor pressures, evolving into fintech and overseeing a corporate overhaul.What are your immediate priorities? We started the process of renegotiating Day 1 with partner Colorado Credit Union to free up or unlock some fund...