Safe Harbor Financial, a cannabis banking company in Arvada, Colorado, is being sold to a special-purpose acquisition company for $185 million in cash and stock.
Northern Lights Acquisition will acquire Safe Harbor for $70 million in cash and $115 million in shares of common stock, the two companies announced Monday. The equity value of the combined company will be about $327 million.
Upon closure of the deal, Safe Harbor CEO Sundie Seefried will oversee the combined entity, which plans to further expand the services it will provide to the fast-growing cannabis industry.
“The acquisition by Northern Lights will allow Safe Harbor to advance its efforts to remain the premier cannabis financial services provider,” Seefried said in a press release. “Our goal is to become a one-stop shop for cannabis business financial needs.”
The deal has already been approved by the board of directors and managers of Northern Lights, Partners Colorado and Safe Harbor, according to the press release. It remains subject to other closing conditions including approval by the stockholders of Northern Lights, the release said.
Safe Harbor was established by Partner Colorado in 2015 to help legal cannabis-related businesses get access to secure banking and other financial services. Banks and credit unions have long shied away from working with cannabis customers, citing stringent federal guidelines.
Safe Harbor has nearly 600 accounts across 20 states, the release said. Last year it processed $4 billion in transactions, for a total of $11 billion since it began operations, it said.
Also last year, Safe Harbor unveiled a commercial cannabis lending platform. Currently, it has an actionable pipeline of more than $300 million, including both existing and new customers, the release said.
John Darwin and Joshua Mann, co-CEOs of Denver-based Northern Lights, which was incorporated last year, will remain on Northern Lights’ board of directors after the sale is finalized, according to the release.
