Northern Lights Acquisition Corp. has signed a definitive agreement to acquire Safe Harbor Financial, a leading cannabis-focused financial services provider, in a $185 million deal aimed at expanding reliable banking solutions for the cannabis industry.

Information on the Target

Northern Lights Acquisition Corp. (NASDAQ: "NLIT") has announced a definitive business combination agreement to acquire SHF, LLC, operating as Safe Harbor Financial. Safe Harbor is a premier provider of banking and financial services tailored to the cannabis industry, originally established in 2015 by Partner Colorado Credit Union (PCCU) to address the industry's significant gap in compliant financial solutions. Over the past seven years, Safe Harbor has successfully built a network encompassing nearly 600 accounts across 20 states and has processed transactions exceeding $11 billion, with a notable $4 billion completed in 2021 alone.

As a leading financial services provider, Safe Harbor has effectively navigated stringent regulations within the cannabis sector. The company's proprietary risk management and compliance program underscores its commitment to maintaining high standards as it aids businesses in managing cash flow and accessing traditional financing options. With the ongoing legislative evolution surrounding cannabis in the U.S., Safe Harbor is strategically positioned to grow and enhance its services in this expanding market.

Industry Overview in the Target’s Specific Country

The U.S. cannabis market has seen exponential growth, currently hosting over 70,000 cannabis-related businesses (CRBs) and projected sales expected to exceed $46 billion by 2025. This dramatic rise presents unique financial challenges, primarily due to co