Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Northern Lights Acquisition — SPAC Merger (June 2022)
31 slides from Shf's SPAC merger presentation, Jun 7, 2022
Slide 1: The Leading Financial Services Platform for the US Cannabis Industry
The Leading Financial Services Platform for the US Cannabis Industry Confidential & Proprietary May 2022
Slide 2: Disclaimers
Disclaimers NOTICE TO RECIPIENTS ‘This confidential presentation this “Presentation”) has been prepared solely for general informational purposes by Northern Lights Acquisition Corp. (the “Company,” "we," “us" or ‘our'), No representation or warranty as to the accuracy, completeness, or faimess of s
Slide 3: Disclaimers
Disclaimers PARTICIPANTS IN SOLICITATION ‘The Company and its directors and executive officers may be deemed participants in the solicitation of proxies from the Company's stockholders with respect to the business combination. Information about those directors and executive officers and a descriptio
Slide 4: Disclaimers
Disclaimers In addition to factors previously disclosed in the Company's reports filed with the SEC and the Preliminary Proxy Statement and those identified elsewhere in this Presentation, the following factors, among others, could cause actual results and the timing of events to differ materially f
Slide 5: Disclaimers
Disclaimers USE OF PROJECTIONS ‘The financial, operational, industry and market projections, estimates and! targets in this Presentation are forward-looking statements that are based on assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of whic
Slide 6: The Issue
Slide 7: Rapidly Growing and Fragmented Market
Rapidly Growing and Fragmented Market Cannabis-related businesses are quickly scaling and require a safe commercial banking solution. Estimated Number of US Cannabis-Related Businesses in 2021 36 States With Medical Marijuana Programs Testing Labs 60,200 - 73,550 Producers / Processors. Industry Tot
Slide 8: Safe Harbor Financial at-a-Glance
Safe Harbor Financial at-a-Glance SHF isa financial services firm that serves the regulated cannabis industry and implements the highest standard of accountability, transparency, monitoring, reporting and risk mitigation measures while meeting BSA obligations in-line with FinCEN guidance on cannabis
Slide 9: Building the Cannabis Financial Services Ecosystem
Building the Cannabis Financial Services Ecosystem Cannabis companies do not currently have access to an all-encompassing financial services solution. SHF is positioned to capture customers and increased market share by providing access to the entire services ecosystem, creating massive economic opp
Slide 10: Pioneering the Cannabis Financial Services Industry
Pioneering the Cannabis Financial Services Industry Safe Harbor Financial has built the industry standard cannabis banking platform while maintaining compliance through rigorous state and federal examinations. iach Oa Separate SHF from Cashless ATM. Out-of-state | Internal Expanded BSA Cannabis Lend
Slide 11: Safe Harbor Deposits Snapshot
Safe Harbor Deposits Snapshot Safe Harbor has sourced strong customer deposit growth which will be further fueled by removing Credit Union restrictions. Annual Cannab Business Dep ($ in millions) ae ‘$611 Diverse client mix of multi-state and single-state operators Customer retention rate of 83.4% i
Slide 12: Uniquely Positioned to Capture National Market Share
Uniquely Positioned to Capture National Market Share Safe Harbor has established continued growth which will be further compounded by geographic expansion and industry growth Safe Harbor Realized Tremendous Growth Opportunity Before the Rush to Cannabis Legalization Stage 4 ‘As the sector matures an
Slide 13: High Barriers Limit New Entrants to the Cannabis Financial Services Market
High Barriers Limit New Entrants to the Cannabis Financial Services Market Legal Environment Regulatory Pressure The uncertain legal environment paired with high levels of scrutiny faced by the cannabis industry causes most financial institutions to shy away from the industry. ‘An evolving legal env
Slide 14: Proven Management Team With Deep Industry Expertise
Proven Management Team With Deep Industry Expertise @ & Paul Penney Chief Investment Officer Sundie Seefried Chris Fameree Donnie Emmi Chief Legal Officer Chief Executive Officer Tyler Beuerlein Chief Strategic Business Development Officer Chief Financial Officer Sundie Seetriedis the CEO of Safe Ha
Slide 15: Proposed Transaction Structure Unlocks SHF's Full Growth Capability
Proposed Transaction Structure Unlocks SHF’s Full Growth Capability The proposed transaction structure? allows Safe Harbor Financial to operate as an independent entity from PCCU, removing balance sheet constraints and unlocking lending capabilities. Existing Constraints Imposed by PCCU’s Majority O
Slide 16: A New Wave of Capital for the Cannabis Industry
16 | © Confidential & Proprietary A New Wave of Capital for the Cannabis Industry Safe Harbor can deploy debt at industry leading rates alongside a lower cost of capital than other industry participants through leveraging its growing managed deposit base.
Slide 17: Commercial Lending Opportunity in the Cannabis Industry
Commercial Lending Opportunity in the Cannabis Industry Safe Harbor Financial is one of the first providers of debt at commercial lending rates establishing long-term market share of operators while maintaining compelling yields. Current Lending Market Safe Harbor Financial * Raises equity or high y
Slide 18: Safe Harbor Loan Pipeline
Safe Harbor Loan Pipeline Safe Harbor began lending to select clients through PCCU in 2021 and is poised to execute on its existing pipeline as well as currently growing operator relationships Current SHF Loan Pipeline Current Safe Harbor lending pipeline is greater than $500 million across 9 states
Slide 19: SHF Presents a Compelling Investment Opportunity
SHF Presents a Compelling Investment Opportunity Untapped Market Opportunity in a Rapidly Strong Cash Flow Growing Sector Strong Growth Profile High Margins Conversion Key Operating Assumptions (oa) Forecasted ramp-up of new CRB and ancillary accounts opened per month driven by operational efficienc
Slide 20: Historical & Projected Financials
Historical & Projected Financials Pro Forma Revenue Projections Pro Forma Adj. EBITDA Projections Pro Forma Net Income Projections ($ in millions) (Sin millions) (8 in millions) 468 Be B fea B =. i “al 33 | /q. 2020A 2021A 2022E 2023E 2024E 2020A 2021A 2022E 2023E 2024E 2020A 2021A 2022E 2023E 2024E
Slide 21: Growth Strategies
Growth Strategies Organic Growth of Current SHF Customers - We have grown managed deposits at PCCU at approximately 69% CAGR since 2015 and have a customer retention rate of approximately 83% and transactions which increases our deposit fee income and lending capacity (Our customers’ revenue growth
Slide 22: Thank You
Slide 23: Northern Lights' Investment Thesis for Safe Harbor Financial
Northern Lights’ Investment Thesis for Safe Harbor Financial Leading Provider of Cannabis Related Financial Services in the US ¥ As one of the first financial services solutions for the cannabis industry, Safe Harbor solves one of the ‘most prevalent pain points: access to compliant banking ¥ 600 cu
Slide 24: Leading Compliant Financial Services
Leading Compliant Financial Services Safe Harbor delivers industry-leading financial services alongside a proprietary software program to compliantly implement CRB bank accounts. Safe Harbor Services ¥ Access to Normalized Banking ¥ SaaS-Based Client Onboarding Services: Wires, Debit, ACH, Remote De
Slide 25: SHF Lending: Why SHF Can Loan More, For Less
SHF Lending: Why SHF Can Loan More, For Less SHF Lending Current Cannabis Lenders. Funding of lending programs required from capital markets vs. balance sheet © Funding of lending programs off account balances vs. capital markets* Low cost of capital allows for broad portfolio of loan types / issuer
Slide 26: Anticipated Timeline
Anticipated Timeline February 14 April 15% Late - June Late - June Announced Preliminary Shareholder Transaction Transaction Proxy Filed Vote Close Vv v Since the Announcement of the Definitive Merger Agreement: Reported 46.9% net income margin in 20211 Reported 83% customer retention rate Expanded
Slide 27: Robust Ecosystem
Robust Ecosystem Safe Harbor Financial is playing an integral role in growing and supporting a healthier and more efficient cannabis financial services industry. Higher efficiency & gy strong compliance protocols ‘Additional . referrals from @ Lack of Alternative existing client“ Financing Solutions
Slide 28: SAFE Banking & FinCEN Guidelines
SAFE Banking & FinCEN Guidelines Providing financial services to CRBs revolves around their Bank Secrecy Act (“BSA”) obligation similar to other high-risk businesses rather than an issue through the Financial Crimes Enforcement Network (“FinCEN"). Y Cannabis Banking can be compared to other high ris
Slide 29: SHF Lending Program - Industry Leading Compliance Meets High Yield Lending
SHF Lending Program - Industry Leading Compliance Meets High Yield Lending Loan Pipeline = New Customers P ~600 Existing alls from Business ols Robust Third-Party = Industry Leading Loan Origination = Origination Portfolio SHF Customers Development Underwriting BSA onboarding procedures intentionall
Slide 30: Revenue Breakdown
Revenue Breakdown CRB Deposit & Activity Growth Loan Interest & Origination Income ($ in millions) ($ in millions) os m= - o i [co | 4 20008 —=«2ORA=S«C:«CORME:SC*«“‘ié‘ékE:C*«*« man OAS mame SESS eae oe ene Ma en Investment Interest Income 24 Pro Forma Projected Revenue Breakdown ($in millions) 30%
Slide 31: Transaction Overview
Transaction Overview Key Highlights + Northern Lights Acquisition Corp. (‘NLIT") will be acquiring Safe Harbor Financial (‘SHF") at a purchase price of $185M! + Assumes approximately 38% cash payout to Partner Colorado Credit Union ("PCCU") and approximately 62% equity rollover Safe Harbor Financial
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