Cannabis financial institution Safe Harbor, which is led by Sundie Seefried, is on its way to debuting public on the NASDAQ through a $185 million merger deal.
The deal will give the company more money to lend to marijuana businesses.
Seefried’s Safe Harbor Financial announced a definitive agreement yesterday to be taken public by Northern Lights Acquisition, a blank-check business also known as a special purpose acquisition company (SPAC).
Seefried stated that the deal will position Safe Harbor to expand its financial services and support the growth of the cannabis industry.
“Our goal is to become a ‘one stop-shop’ for cannabis business financial needs,” she added.
New York-based Northern Lights, an affiliate of Luminous Capital, will pay $70 million in cash and $115 million in common stock to acquire Safe Harbor, a subsidiary of Colorado-based Partner Colorado Credit Union.
The estimated post-transaction equity value of the company will be $327 million, according to the release.
Northern Lights trades on the Nasdaq under the ticker symbol NLIT.
“The acquisition by Northern Lights will allow Safe Harbor to advance its efforts to remain the premier cannabis financial services provider,” Seefried said, who will serve as CEO of the merged company.
Northern Lights co-CEOs John Darwin and Joshua Mann said in a statement that Safe Harbor “is the most compelling opportunity we have encountered in the cannabis industry as both operators and investors.”
The two, who will remain on the board of directors, characterized Safe Harbor as setting the “gold standard” for regulatory compliance.
The transaction is subject to approval by Northern Lights stockholders and other closing conditions.