Cannabis Fintech SHF Holdings Returns To Compliance & Secures Strong Liquidity For Expansion, Here’s How

Cannabis-focused fintech company and SHF Holdings, Inc., doing business as Safe Harbor Financial (NASDAQ: SHFS),debt-free has regained compliance with Nasdaq’s listing requirements.

The provider of banking and lending services to the regulated cannabis industry announced on Monday that it has met the rule requiring a minimum of $2.5 million in shareholders’ equity, following efforts by CEO Terry Mendez, who has been serving in this role since February 2025.

“Over the last eight months, we have been laser focused on three critical objectives: retaining our Nasdaq listing, addressing our capital structure and liquidity challenges, and developing a strategy to grow through enhanced service offerings for our Financial Institution customers and Cannabis Related Business clients,” Mendez said.

Over the past period, the company has cut annual operating costs by more than $3 million, strengthening both its liquidity and capital structure.

According to the company’s 8-K filings with the Securities and Exchange Commission on Sept. 23 and Oct. 3, SHF Holdings has closed a roughly $24.8 million securities purchase agreement for convertible preferred stock and warrants to purchase common stock with certain accredited investors, members of management and the Board, and certain vendors.

On Sept. 30, the company completed a series of recapitalization transactions that enabled it to raise $6.8 million in new capital, while eliminating $18.8 million of its debt.

SHF Holdings said that it is now debt free and that it has capital to fuel its growth strategy. The recapitalization allows for more operational flexibility for the company’s management to execute on its strategic plan.

Moreover, the company has set up a $150 million equity line of credit (ELOC), which could expand to $500 million depending on market conditions and other factors.

The move allows SHF Holdings to pursue high-return lending and growth opportunities and fund future expansion in line with its strategic plan.

SHFS Price Action

SHF Holdings’ shares traded 17.05% lower at $1.98 per share at the time of writing on Monday morning.