Yesterday, two of the most recognizable names in cannabis finance announced a deal that will see Safe Harbor acquire Abaca for $30 million dollars.
With the acquisition of Abaca, Safe Harbor expands an already stellar client base, while folding in Abaca’s industry-leading fintech services and payment platform.
“The enhanced Safe Harbor fintech platform will now offer operators desktop and mobile banking, treasury management, payment processing, cash handling, logistics, and a new payroll service launching later this quarter. In addition, the acquisition will increase management talent of seasoned cannabis fintech executives,” Safe Harbor said in a release.
That talent increase includes Dan Roda, Co-founder and CEO of Abaca, who will become Executive Vice President and Chief Operating Officer of Safe Harbor and Brian Bauer, Co-founder and President of Abaca, who will become the new Chief Revenue Officer of Safe Harbor.
Sundie Seefried of Safe Harbor will serve as CEO of the combined organization.
Greenway reached out to Abaca CEO and Co-founder Dan Roda to get more information about what the merger means for the companies and their clients.
“One of the reasons we’re thrilled for this pending transaction is that Abaca’s and Safe Harbor’s strategic visions are closely aligned,” Roda said. “This allows everyone at Abaca, whether they’re based out of our home office in Arkansas or working remotely across the country, to be a valuable member of the new, combined team. Joining forces with Safe Harbor enables the Abaca team to better advance our mission of empowering the cannabis community with essential financial services and innovative, affordable solutions.”
Terms of the $30 million purchase dictate that Abaca shareholders will receive a $3 million cash payment at close and $8.4 million in common stock based on the 10-day VWAP of Safe Harbor common stock. Additionally, at the 1-year anniversary, Safe harbor will make an additional $3 million cash payment and disburse $12.6 million in Safe Harbor common stock based on the 10-day VWAP preceding the 1-year anniversary. A final cash payment of $3 million will be made at the 2-year anniversary.
Further specifics of exactly how the two entities will merge together are unavailable at this time, but the Abaca brand is expected to remain active as part of the Safe Harbor Financial company.
“Abaca accounts will remain the same for existing customers,” Roda told Greenway. “Their login credentials, account numbers, and other information won’t change. Together, Abaca and Safe Harbor have twice the customer support and compliance team, enabling us to serve our customers even more effectively.
“Existing and prospective customers can expect more time-saving and desired financial tools, such as lending and payroll, to become available via our online platform later this year. Merging with Safe Harbor accelerates our product roadmap and helps us deliver even better products, services, customer support, and digital user experience. Additionally, this move allows Abaca to offer national coverage and unlimited deposit capacity for businesses ranging from single dispensaries to multi-state and national operators.”
The company says the merger of Safe Harbor’s wide range of financial services and Abaca’s industry-leading fintech and payment solutions creates more comprehensive solutions while streamlining the process for cannabis operators.
You can learn more about Safe Harbor online at https://shfinancial.org/.
You can find Abaca at https://www.goabaca.com/.
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