SHF Holdings announces 1-for-20 reverse stock split

Published 20/03/2025, 14:34
SHF Holdings announces 1-for-20 reverse stock split

SHF Holdings, Inc. (NASDAQ:SHFS), a finance services company currently trading at $0.28 with a market capitalization of $15.37 million, has announced a reverse stock split of its Class A common stock at a ratio of 1-for-20, effective March 24, 2025. This decision follows the approval by the company’s board of directors and its stockholders at a special meeting. According to InvestingPro analysis, the stock is currently trading below its Fair Value, with attractive valuation metrics including a P/E ratio of 4.18 and a Price/Book ratio of 0.39.

The reverse stock split, intended to consolidate shares, will result in every twenty shares of pre-split Class A common stock becoming one post-split share. The company’s common stock will continue trading on The Nasdaq Capital Market under the ticker "SHFS" with a new CUSIP number of 824430300. The split-adjusted trading is expected to commence on the opening of the market on the effective date. This move comes as the stock has experienced significant pressure, with InvestingPro data showing a 67% decline over the past year, though technical indicators suggest the stock may be oversold.

As a consequence of the reverse stock split, the number of shares issuable upon the exercise of outstanding warrants, preferred stock, and other convertible securities will be adjusted in accordance with their terms. This includes adjustments to the exercise price for warrants and the conversion price for preferred stock, ensuring that the aggregate price payable upon conversion or exercise remains approximately the same post-split.

No fractional shares will be issued as a result of the reverse stock split. Shareholders who would have received a fractional share will instead receive a rounded up whole share. However, for shares issued under the company’s Amended and Restated 2022 Equity Incentive Plan, fractional shares will be rounded down.

Continental Stock Transfer & Trust Company is acting as the exchange agent for the reverse stock split. Stockholders holding shares electronically in book-entry form or through a broker, bank, or other nominee do not need to take any action to receive post-split shares.

This news is based on a press release statement and reflects the company’s current expectations. SHF Holdings has made it clear that forward-looking statements are subject to risks and uncertainties and that actual results could differ materially from those predicted. The company’s most recent Annual Report on Form 10-K for the year ended December 31, 2022, contains further details on potential risks and uncertainties. For investors seeking deeper insights, InvestingPro offers comprehensive analysis including 15+ additional ProTips and a detailed financial health assessment, available in the Pro Research Report covering this and 1,400+ other US stocks.

In other recent news, SHF Holdings, Inc. has announced several significant developments. The company’s stockholders have approved a reverse stock split, allowing a split ratio of up to 1-for-20 at the Board’s discretion. This strategic move aims to increase the per-share trading price of SHF Holdings’ common stock, potentially enhancing marketability and liquidity. Additionally, SHF Holdings has reported the departure of Tyler Beuerlein, the Chief Strategic Business Development Officer, effective March 17, 2025, with no disagreements cited as the reason for his resignation. In a leadership update, Terrance Mendez has been appointed as Co-Chief Executive Officer, bringing extensive experience in executive roles within the cannabis industry. Mendez’s appointment is part of the company’s efforts to strengthen its leadership team. Meanwhile, Safe Harbor Financial, a subsidiary, has renegotiated its debt terms with Partner Colorado Credit Union, securing a two-year interest-only period, which is expected to free up over $6 million in cash flow. This agreement reflects a strategic effort to bolster Safe Harbor’s financial position and support future growth opportunities.

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