Regulated cannabis industry financial services provider afe Harbor Financial has agreed to acquire the cannabis financial technology platform Abaca for $30 million.
“We are thrilled to announce this agreement to acquire Abaca,” Safe Harbor Founder and CEO Sundie Seefried said. “With their ecosystem of cannabis banking and finance platform, proprietary technology, strong financial institution, and banking relationships, and experienced founder-led management team, we believe Abaca is the ideal platform to help us take a large step forward in scaling our capabilities and service offerings in building the complete cannabis fintech ecosystem.”
Abaca has processed over $3 billion in gross transactions, working with FDIC-insured bank partners to enable traditional banking services for operators ranging from single dispensaries to multi-state and national operators.
“Following its recent NASDAQ listing and key additions to the executive team, Safe Harbor is positioned to be the leader in compliant financing, and banking offerings to the regulated operating U.S. cannabis industry nationwide,” Abaca Co-Founder and CEO said. “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.”
Safe Harbor Financial said its range of financial services, combined with Abaca’s fintech and payment solutions, would create comprehensive and streamlined banking solutions for cannabis operators.
The transaction provides Abaca shareholders with $3 million cash at close and $8.4 million in common stock based on the 10-day VWAP of Safe Harbor common stock.
The company will pay an additional $3 million in cash and $12.6 million in Safe Harbor common stock based on the 10-day VWAP preceding the first anniversary. Upon the two-year anniversary, there will be a final cash payment of $3 million in cash.