SHF Holdings announces CFO resignation, new auditor

Published 02/05/2025, 22:42
SHF Holdings announces CFO resignation, new auditor

SHF Holdings, Inc. (NASDAQ:SHFS), a finance services company with a market capitalization of $9.5 million, has filed an 8-K with the SEC detailing significant corporate changes. According to InvestingPro analysis, the company’s stock is currently trading near its Fair Value, amid challenging market conditions that have led to a 78% decline in share price over the past year. On Monday, the company’s Audit Committee appointed Macias Gini & O’Connell LLP (MGO) as the new independent registered public accounting firm, effective immediately, to audit SHF Holdings’ consolidated financial statements for the year ending December 31, 2025.

The decision to engage MGO follows the company’s non-consultation with the firm during the fiscal years of 2023 and 2024, and up to April 28, 2025. There were no disagreements or reportable events between SHF Holdings and MGO that influenced the Company’s accounting or financial reporting decisions.

In a separate but concurrent development, SHF Holdings announced the resignation of James H. Dennedy, the Chief Financial Officer (CFO), effective June 6, 2025. Mr. Dennedy’s departure is for personal reasons and not due to any operational, policy, or practice disagreements with the company. He will assist in the transition of his responsibilities until his departure.

Following Mr. Dennedy’s resignation, the company will initiate an executive search for a new CFO. Meanwhile, Terrance Mendez, the current Chief Executive Officer, will take on the role of interim CFO from the Resignation Date.

This information is based on a press release statement filed with the SEC.

In other recent news, SHF Holdings has been navigating several significant developments. The company announced a change in its independent accounting firm after Marcum LLP ended its auditor relationship, which spanned fiscal years 2023 and 2024. Despite no disagreements on accounting practices, the SEC filing revealed material weaknesses in SHF Holdings’ internal controls over financial reporting. Additionally, SHF Holdings is facing potential delisting from Nasdaq for non-compliance with listing requirements, although it recently met the minimum bid price requirement. The company plans to submit a compliance plan to address the shareholders’ equity issue. In another strategic move, SHF Holdings has executed a 1-for-20 reverse stock split of its Class A common stock, approved by the board and stockholders. This action aims to consolidate shares and potentially enhance marketability and liquidity. Furthermore, the company announced the departure of Chief Strategic Business Development Officer Tyler Beuerlein, effective March 17, 2025, with no disclosed disagreements regarding his resignation. Investors are watching these developments closely as SHF Holdings continues to adjust its strategic direction.

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