Market Expansion Potential: Safe Harbor anticipates that rescheduling cannabis to Schedule III will encourage over 4,700 state-chartered banks and credit unions to reconsider servicing cannabis-related businesses, significantly expanding the company's addressable market.
Compliance Service Advantage: Safe Harbor's fully managed compliance service enables financial institutions to quickly and compliantly serve cannabis-related businesses across 41 states, enhancing its competitive edge in the compliant financial services sector.
Tax Burden Reduction: Under the new tax regime, Safe Harbor's clients will no longer pay 280E taxes, which could materially improve their cash flows, thereby enhancing Safe Harbor's investment income and lending capacity.
Lower Financing Costs: With rescheduling, interest expenses will become tax-deductible, reducing the after-tax cost of debt for cannabis-related businesses, enabling them to borrow more from lenders like Safe Harbor, further driving revenue growth for the company.
SHFS
$1.3137+Infinity%1D
Analyst Views on SHFS
About SHFS
SHF Holdings, Inc. is a service provider to offer compliance, monitoring and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators. Its services include regulatory compliance consulting and software for maintaining Know Your Customer (KYC) and Bank Secrecy Act compliance to financial institutions, principally conducted vis-a-vis its proprietary financial services platform and the origination, onboarding, verification, and servicing of cannabis-related deposit business for and on behalf of its partner financial institutions. Its services also include sourcing, underwriting, servicing, and administering loans issued to cannabis businesses and related entities, which are often also its customers and being customers of its partner financial institutions. Through the Company’s platform, its financial institution clients can provide cannabis-related businesses (CRBs) with access to traditional financial services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
