Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Investor Presentation (February 2023)
18 slides from Shf's investor presentation, Feb 27, 2023
Slide 1: Investor Presentation
February 27, 2023 Investor Presentation | NASDAQ:SHFS
Slide 2: Disclaimers
Disclaimers ‘This contental prosenition this “Preseniaton) has been prepared slay for general informational spores by SH Hota. (he Corgan, "we. User) No eprecttatonor waranty 2 the [nctecy, comsleteness, ares of such inmate bag made by the Company any ae psn, lana nether the Comany nx any cher perso
Slide 3: Disclaimers (continued)
Disclaimers (onus. ‘Ta Nota rane ifomatn regarding the Company contained nhs Presentation has been taken {tr or prepares based en hte! foanda stant, which este emt caved-ou opertane of Parner orado Crest Union PCCU) Use oF PROJECTIONS ‘erward-eckng statomenis that ao based on assumiptons and estates
Slide 4: The U.S. Cannabis Industry is Growing
The U.S. Cannabis HAA Industry is Growing “37 States Medical use legal We 68% >70,000 of Americans support full federal legalization cannabis-related businesses (CRBs) L | >$46B in sales. Medical and adult-use legal 1 3 States Expected by 2025 Potentially legalizing in 2023 9 Stotes That Could Legal
Slide 5: Traditional financial institutions will not bank with Cannabis-Related Businesses
Traditional financial institutions w 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 regardin
Slide 6: 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 (ConsDaEDNS Financial ONBOARDING Transaction FEES Incoming Safe Harbor / Bank ae ~—— Abaca Client - institution es — ap con
Slide 7: Compliance-first platform, eight years in the making
Compliance- first platform, eight years in 2023 the making Fizz aenmecnme sen eonnnererienrtere | for continued listed on NASDAQ, Assembled National Expansion Officer Team a 2021 _<@iBecoupled Safe Harbor from Parent | Sunciie Seefried! (CEO) and team SAFE {o lead SHF full time RBOR ANCIAL 2020 _-«G
Slide 8: 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 9: Key Growth Metrics
Key Growth Metrics Free cash flow positive with eight years of Adjusted EBITDA* profitability 2015 — 5. | STATES , ) accounts | | DEPosiITs | BALANCES | ON DEPOSIT ) TODAY 40 >1000 >$17B >$300M/month ~$220M “Aausted EBITDA |e &nen-GAAP nancial messure cleusted es ne income befee exes and deprecation
Slide 10: Strong performance...
Strong performance... Be © A) High CRB ‘Strong cash flow Strong margin Conservative retention rate conversion profile loan/deposit ratio of (63% in 2021) (23%*) <65% cs & & Diverse client mix <2% of total deposit fee Exempt from IRS Code $S0s, MSOs, cultivators, income attributed to any 280E dispens
Slide 11: 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 Q0q CHANGE 30% 227% 70% 32% 3.5% 1
Slide 12: Growth Strategy
Growth Strategy Organic Inoreases in existing CRB th revenue and expanded use of i 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 i Providing access to capital at norma
Slide 13: Commercial lending opportunity
Commercial lending opportunity Uniquely positioned to capture significant market share with industry-leading lending rates Loan source Customer acquisition Typical 2-3 yr rate CURRENT LENDING ENVIRONMENT Raises equity / high yield debt to deploy loans Origination team requires active outreach and le
Slide 14: 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 NDERWRITING BSA onboarding procedures designed for commercial underwriting process = SHF’s Proprietar
Slide 15: Investment Highlights
Investment Highlights The only NASDAQ-listed company with fully compliant cannabis finance infrastructure we o n) ag) Growing U.S. cannabis industry seeking reliable banking and financing solutions Tested and proven compliant cannabis finance infrastructure Seasoned management team well versed on th
Slide 16: Officers
Officers SUNDIE SEEFRIED TYLER BEUERLEIN Chief Executive Officer Chief Strategic Business Development Officer + One of the The CEO + Former Chief Revenue Officer Publication's top 20 dynamic & Chief Business Development USS. CEOs of 2020 Officer for Hypur Ventures: + Author of Navigating Safe + Form
Slide 17: Directors
Directors RICHARD CARLETON CEO, Canadian Secunties Exchange JENNIFER MEYERS CFO, Partner Colorado Credit Union JONATHAN SUMMERS Chairman, Billion Pairs Genetic Corp. and EXMeeuticals JOHN DARWIN Co-CEO, Northern Lights Acquisition Corp. FRED NEIHAUS Managing Partner, Interactive Global Solutions KAR
Slide 18: Thank You
THANK YOU February 2023 Investor Presentation NASDAQ:SHFS