Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Investor Presentation (February 2023)
19 slides from Shf's investor presentation, Feb 28, 2023
Slide 1: February 27, 2023 Investor Presentation
February 27, 2023 Investor Presentation | NASDAQ:SHFS
Slide 2: Disclaimers
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Slide 3: Disclaimers
P THEUS. CANNABISINDUSTRY'S LEADING FIN INGIAL SERVICES PLATFORM Disclaimers wns. Tho historical rani iformaton reparcng the Company contained nhs Presentation has ben taken ‘tom or pepe based on hiss nate tsements, whch ested Wor carved ut operaon of Parner Credo Credit Unon (PECL) “Te tancial. ope
Slide 4: The U.S. Cannabis Industry is Growing
The U.S. Cannabis HISSNCTat Industry is Growing “37 States Me 68% >70 b 000 of Americans support full federal legalization Medical use legal cannabis-related businesses (CRBs) so >$46B in . ok sa ] es. Medical and adult-use legal 1 3 States Expected by 2025 Potentially legalizing in 2023 ‘Medical an
Slide 5: Traditional financial institutions will not bank with Cannabis-Related Businesses
Traditional financial institutions will not bank with Cannabis-Related Businesses (CRBs) High risk, high barriers to entry + Many banks, credit unions will not bank with cash-intensive businesses, regardless of industry, due to high cost and compliance risk - Conflicting state and federal laws regar
Slide 6: Capitalization Overview
P LATEORW, THEUS. CANNABISINOUSTRY'S INANGIAL SERVICES. ADING u Capitalization Overview NASDAQ:SHFS Capitalization ‘Share Structure (millions) | Special purpose acquisition company (SPAC), Northern Lights { Acquisition, closed its acquisition of cannabis financial institution { service provider Safe
Slide 7: Fully compliant cannabis finance infrastructure
Fully compliant cannabis finance infrastructure The most robust suite of specialized financial and treasury services available to the industry ONGOING DEPOSIT AND ACTIVITY FEES (onsoanDNe Financial ONBOARDING Transaction FEES 7 Incoming Safe Harbor / a shia ca Abaca Client — Service API Salon by Fin
Slide 8: Compliance-first platform, eight years in the making
Compliance- first platform, eight years in 2023 the making 30 22g acquired Abaca (Nov 22) | Completed de-SPAC and approval for continued listed on NASDAQ, Assembled National Expansion Officer Team 2021 _<iDecoupled Safe Harbor from Parent | Sundie Seefried (CEO) and team ASAFE Jae RBOR ANCTAL 2020 _
Slide 9: Competitive Advantages
Competitive Advantages In 9th year of successfully providing access to financial services consistently to the industry Proprietary fintech platform automates onboarding, compliance and fees to enable scale and efficiency High barrier to entry Successfully passed through 16 federal and state exams Me
Slide 10: Key Growth Metrics
Key Growth Metrics Free cash flow positive with eight years of Adjusted EBITDA* profitability 2015 — vs. — 41 | STATES , 60 | Accounts | $153M | Deposits | BALANCES ~$13M — on deposit | TODAY 40 >1000 >$17B >$300M/month ~$220M “Adjusted EBITDA is 2 non-GAAP fnancal measur calculated as net income bl
Slide 11: Strong performance...
Strong performance... BH © High CRB Strong cash flow Strong margin retention rate conversion profile (83% in 2021) (23%) ral Diverse client mix <2% of total deposit fee ‘880s, MSOs, cultivators, income attributed to any dispensaries, manufacturers and single CRB ancillary businesses across 40 states
Slide 12: Quarterly Financials
Quarterly Financials Revenue Net income Adjusted EBITDA* Adjusted EBITDA* margin Total deposits Total accounts Average monthly fee Q3 2022 $2.4M $1.1M $1.3M 54% $8.4M 683 $715 Q2 2022 $1.9M $0.3M $0.8M 41% $8.1M 619 $758 Q3 2021 $1.7M $0.9M $0.9M 55% $9.2M 559 $904 aoa CHANGE 30% 227% 70% 32% 3.5% 1
Slide 13: Growth Strategy
Growth Strategy Organic Increases in existing CRB carl revenue and expanded use of fee-based services Bulk acquisition of client relationships through M&A and from , Fis wanting to exit their service offering in this industry New commercial lending opportunity Providing access to capital at normaliz
Slide 14: Commercial lending opportunity
Commercial lending opportunity Uniquely positioned to capture significant market share with industry-leading lending rates URRENT LENDING ENVIRONMENT Raises equity / high yield debt Loans off of managed deposit Loan source to deploy loans account balances customer Origination team requires active On
Slide 15: Financial Lending Program Playbook
Financial Lending Program Playbook PIPELINE >1000 Existing Accounts with Financial Institution Clients >$300M in Consideration New CRB customers from Business Development Robust 3" party origination ERWRITING BSA onboarding procedures designed for commercial underwriting process = SHF's Proprietary
Slide 16: Investment Highlights
Investment Highlights The only NASDAQ-listed company with fully compliant cannabis finance infrastructure we ES feat Ta e Growing U.S. cannabis industry seeking reliable banking and financing solutions Tested and proven compliant cannabis finance infrastructure Seasoned management team well versed o
Slide 17: Officers
Officers SUNDIE SEEFRIED TYLER BEVERLEIN DONNIE EM Chit Executive Offcer Ghiet Strategic Business Chet Legal Ofer Development Offcer © Oneofthe The ce «Former Chef Revenue Ofer - Menaging Partner of Hanser] Pasieateis top 20 nami Eonar Suchose Devstopment bale tie ceon arta Ofer fo Hour Venres Gout
Slide 18: Directors
Directors RICHARD CARLETON CEO, Canadian Securities Exchange JENNIFER MEYERS CFO, Partner Colorado Credit Union JONATHAN SUMMERS Chairman, Billion Pairs Genetic Corp. and EXMceuticals JOHN DARWIN Co-CEO, Norther Lights Acquisition Corp. FRED NEIHAUS Managing Partner, Interactive Global Solutions KAR
Slide 19: Thank You
THANK YOU February 2023 Investor Presentation NASDAQ:SHFS