GlobeNewswire·Nov 9, 2026, 6:10 AM ET

Safe Harbor CEO Issues Letter to Shareholders Addressing Capital Structure, Nasdaq Listing and Proposed Opifex Transaction

SHFS

SHF Holdings, Inc. (d/b/a Safe Harbor) released third-quarter 2026 financial results and a shareholder letter from CEO Terrance Mendez on November 9, 2026.
Third-quarter revenue reached $1.95 million, a 6.5% increase year-over-year, while loan program income rose 70.2% to approximately $869,000 due to an increased revenue share agreement with Partner Colorado Credit Union.
Average client deposit balances grew 3.8% to $112.0 million, though the company reported a net loss of approximately $979,000 for the quarter with a "going concern" disclosure in its financial statements.
A 1-for-12 reverse stock split effective September 30, 2026, triggered a reset of the Series B Convertible Preferred Stock conversion price to $0.1210 per share, leading to the conversion of 19,529 preferred shares into 131,219,818 common shares between October 22 and November 6, 2026.
Common shares outstanding increased from 1,028,702 on September 30 to 132,248,520 on November 6, with the remaining 7,605 Series B shares convertible into approximately 62.9 million additional shares.
The company received a second 180-day compliance period from Nasdaq through April 19, 2027, to meet the $1.00 minimum bid price requirement, though the stock recently closed below $0.10 for eight consecutive days, risking suspension.
Safe Harbor signed a non-binding term sheet on October 23, 2026, to merge with Opifex Media, Inc., where Opifex security holders would own approximately 85% of the combined entity and legacy shareholders would own approximately 15%.
The proposed transaction is expected to be a reverse acquisition with Opifex as the accounting acquirer, requiring stockholder approval, Nasdaq approval, and the conversion of Series B securities.
An ongoing Abaca litigation trial regarding damages occurred on August 10-11, 2026, with an estimated potential loss range of $0 to $7.8 million plus interest that could exceed available liquidity.
Partner Colorado Credit Union sold its Series B Convertible Preferred Stock to another holder on October 21, 2026, resulting in the company no longer classifying PCCU as a related party.
The company intends to evaluate further reverse stock splits and cost reductions to address liquidity challenges and maintain its Nasdaq listing.

Company: Safe Harbor Financial Services, Inc.
Keywords: Nasdaq:SHFS, Safe Harbor Financial Services, Inc.