Cannabis financier SHF Holdings buys fintech firm Abaca for $30 million

Colorado-based cannabis-focused finance company SHF Holdings said it is spending $30 million in a cash-and-stock deal to acquire financial technology company Rockview Digital Solutions, which does business as Abaca.

According to a news release:

• When the deal closes, shareholders of North Little Rock, Arkansas-headquartered Abaca will receive $3 million in cash and $8.4 million in common stock based on the 10-day volume-weighted average price (VWAP) of Safe Harbor common stock.
• One year after the deal closes, SHF Holdings will pay out another $3 million in cash and $12.6 million in common stock based on the 10-day VWAP preceding the one-year anniversary.
• Two years after the deal closes, Abaca shareholders will receive a final cash payment of $3 million.

“With their ecosystem of cannabis banking and finance platform, proprietary technology, strong financial institution and banking relationships, and experienced founder-led management team, we believe Abaca is the ideal platform to help us take a large step forward in scaling our capabilities and service offerings in building the complete cannabis fintech ecosystem,” Sundie Seefried, SHF Holdings founder and CEO, said in a statement.

SHF Holdings was known as Safe Harbor Financial when it was acquired for $185 million acquisition by New York-based Northern Lights Acquisition Corp. in September.

After the acquisition, SHF Holdings began trading on the Nasdaq as SHFS.

Source: https://mjbizdaily.com/cannabis-financier-shf-holdings-buys-fintech-firm-abaca-for-30-million/