Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Northern Lights Acquisition — SPAC Merger (May 2022)
38 slides from Shf's SPAC merger presentation, May 24, 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 fairness of
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 description
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 which
Slide 6: Today's Presenters
Today’s Presenters Safe Harbor Financial Sundie Seefried Chief Executive Officer —3®PARTNER Note: Neither NLIT nor SHF are afiiated with the third parties referenced in this Presentation. 6 | © Confidential & Proprietary 2 © Chris Fameree Chief Financial Officer as cs Pwe Cherry Bekaert“” Paul Penne
Slide 7: Transaction Overview
Transaction Overview Key Highlights at a purchase price of $185M? = Assumes approximately 38% cash payout to Partner Colorado Credit Union Northern Lights Acquisition Corp. (“NLIT”) will be acquiring Safe Harbor Financial (“SHF”) (“PCCU”) and approximately 62% equity rollover = Safe Harbor Financial
Slide 8: Northern Lights' Investment Thesis for Safe Harbor Financial
Northern Lights’ Investment Thesis for Safe Harbor Financial Leading Provider of Cannabis Related Financial Services in the US v As one of the first financial services solutions for the cannabis industry, Safe Harbor solves one of the most prevalent pain points: access to compliant banking vy ~600 c
Slide 9: Anticipated Timeline
Anticipated Timeline February 14¢ April 15th Late - June Late - June Announced Preliminary Shareholder Transaction Transaction Proxy Filed Vote Close v v Since the Announcement of the Definitive Merger Agreement: Reported 46.9% net income margin in 20211 Reported 83% customer retention rate ’ Expand
Slide 10: 10 | © Confidential & Proprietary
10 | © Confidential & Proprietary
Slide 11: Safe Harbor Financial at-a-Glance
Safe Harbor Financial at-a-Glance SHF is a financial services firm that serves the regulated cannabis industry and implements the highest standard of accountability, transparency, monitoring, reporting and risk mitigation measures while meeting BSA obligations in-line with FinCEN guidance on cannabi
Slide 12: Safe Harbor Deposits Snapshot
Safe Harbor Deposits Snapshot Safe Harbor has sourced strong customer deposit growth which will be further fueled by removing Credit Union restrictions. nual Cannabis-Related Business Deposits ($ in millions) $$3,602 2015 2016 2017 2018 2019 2020 2021A Diverse client mix of multi-state and single-st
Slide 13: 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. Launch a uso! Separate SHF from Cashless ATM Out-of-State i Internal Expanded BSA Cannabis
Slide 14: 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 v Access to Normalized Banking Services: Wires, Debit, ACH, Remote Deposit Capture v Access to Busin
Slide 15: 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 & strong compliance @ protocols Additional referrals from Lack of Alternative existing client Financing Solutions networ
Slide 16: Proven Management Team with Deep Industry Expertise
(01) Proven Management Team with Deep Industry Expertise Uniquely Positioned in a Rapidly Growing and Fragmented Market Investment Commercial Lending Platform Backed by Proprietary FinTech Software Targeted Strategy for Bolt-On Acquisitions and Growth Initiatives High Barriers to Entry for the Canna
Slide 17: Proven Management Team With Deep Industry Expertise
Proven Management Team With Deep Industry Expertise 6@i9 y Sundie Seefried Chief Executive Officer Sundie Seefried is the CEO of Safe Harbor Financial and a 35- year veteran of the credit union industry. Sundie is considered a pioneer and proven leader in the cannabis financial services industry, pr
Slide 18: Investment Highlights
Investment Highlights 18 | © Confidential & Proprietary Proven Management Team with Deep Industry Expertise Uniquely Positioned in a Rapidly Growing and Fragmented Market Commercial Lending Platform Backed by Proprietary FinTech Software Targeted Strategy for Bolt-On Acquisitions and Growth Initiati
Slide 19: 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 70,000+ CRBs 36 States Pd oe A 9 4 i Testing Lab: Within Existing Cannabis Market With Medical Marijuana Pr
Slide 20: 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 21: Investment Highlights
Investment Highlights 21 | © Confidential & Proprietary Proven Management Team with Deep Industry Expertise Uniquely Positioned in a Rapidly Growing and Fragmented Market Commercial Lending Platform Backed by Proprietary FinTech Software Targeted Strategy for Bolt-On Acquisitions and Growth Initiati
Slide 22: A New Wave of Capital for the Cannabis Industry
22 | © 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 23: 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 24: SHF Lending: Why SHF Can Loan More, For Less
SHF Lending: Why SHF Can Loan More, For Less Current Cannabis Lenders SHF Lending (>) Funding of lending programs off account balances vs. capital markets Funding of lending programs required from capital markets vs. balance sheet (>) Low cost of capital allows for broad portfolio of loan types / is
Slide 25: 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 26: SHF Lending Program - Industry Leading Compliance Meets High Yield Lending
SHF Lending Program - Industry Leading Compliance Meets High Yield Lending Loan Pipeline a New Customers A 2 ~600 Existing from Business Robust Third-Party = Industry Leading Loan SHF Customers Origination — Origination Portfolio Development Underwriting 7 BSA onboarding procedures intentionally des
Slide 27: 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 Ow
Slide 28: Proven Management Team with Deep Industry Expertise
Proven Management Team with Deep Industry Expertise Uniquely Positioned in a Rapidly Growing and Fragmented Market Investment Commercial Lending Platform Backed by Proprietary FinTech Software (04) Targeted Strategy for Bolt-On Acquisitions and Growth Initiatives High Barriers to Entry for the Canna
Slide 29: 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% Our customers’ revenue growth will lead to larger deposits and transactions which increases our deposit fee in
Slide 30: 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 31: Investment Highlights
Investment Highlights 31 | © Confidential & Proprietary Proven Management Team with Deep Industry Expertise Uniquely Positioned in a Rapidly Growing and Fragmented Market Commercial Lending Platform Backed by Proprietary FinTech Software Targeted Strategy for Bolt-On Acquisitions and Growth Initiati
Slide 32: 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 Pressure An evolving legal environment at the federal level poses a challenge to new entrants. Without an established system of measures and protocols in place, competitors are at a sever
Slide 33: 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”). v Cannabis Banking can be compared to other high ris
Slide 34: Financials
Financials 34 | © Confidential & Proprietary
Slide 35: SHF Presents a Compelling Investment Opportunity
SHF Presents a Compelling Investment Opportunity Untapped Market Opportunity in a Rapidly Growing Sector Strong Growth Profile - High Margins - Strong Cash Flow Conversion Key Operating Assumptions © Forecasted ramp-up of new CRB and ancillary accounts opened per month driven by operational efficien
Slide 36: Historical & Projected Financials
Historical & Projected Financials Pro Forma Revenue Projections Pro Forma Adj. EBITDA Projections Pro Forma Net Income Projections ($ in millions) 6 ($ in millions) 36. al : 1 2s | E3 2 | E3 2020A 2021A 2022E 2023E 2024E 2020A 2021A 2022E 2023E 2024E 2020A 2021A 2022E 2023E 2024E (sx) (5%) eo (sr) (
Slide 37: Revenue Breakdown
Revenue Breakdown CRB Deposit & Activity Growth Loan Interest & Origination Income ($ in millions) ($ in millions) 13 a 178 06 05 Z 8 2.0 Ei a El 2020A 2021A 2022E 2023E 2024E 2020A 2021A 2022E 2023E 2024E ™CRB Deposit Fees CRB Activity Fees ® Loan Interest Income Loan Origination Income Investment
Slide 38: © Confidential & Proprietary
© Confidential & Proprietary