1. SHFS expands by hiring 420 IT Solutions' founders. 2. The acquisition brings immediate revenue and industry relationships. 3. Revenue milestones of $5-6 million are performance-based for share issuance. 4. SHFS aims to scale consulting and managed services division. 5. The acquisition supports a diversified financial services model.
FAQ
Why Bullish?
The acquisition is expected to create immediate revenue streams and expand market reach, similar to how past successful integrations have boosted financial performance in similar sectors.
How important is it?
The strategic acquisition and entry into new service areas could significantly enhance growth, reflecting high market potential for SHFS.
Why Long Term?
The integration will take time to yield results, building a stronger client base and providing consulting services that should gradually enhance revenue over several years.
Safe Harbor Financial Expands Consulting and Managed Services Platform
DENVER, Dec. 23, 2025 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., operating as Safe Harbor Financial (NASDAQ: SHFS), has announced a significant expansion of its services. The company has strategically acquired 420 IT Solutions, a respected consulting and managed services firm focused on the legal cannabis industry. This acquisition marks a pivotal moment for Safe Harbor as it integrates 420 IT Solutions' core assets and client contracts into its existing operational framework.
Strategic Expansion of Safe Harbor's Financial Services
The acquisition facilitates the growth of Safe Harbor’s Consulting and Managed Services division, led by 420 IT Solutions co-founders Frank A. Salluce and David Smokler. This expansion adds immediate revenue streams, enhances the company's leadership capabilities, and strengthens its relationships with financial institutions and cannabis operators.
Safe Harbor has assumed control of 420 IT Solutions' key assets, including:
- Existing client contracts
- Brand and trademarks
- Proprietary advisory frameworks
- Digital and operational assets focused on regulated banking environments
Further, the acquisition agreement is structured to be performance-based, consisting of up to 125,000 shares contingent upon achieving revenue milestones of $5 million in 2026 or $6 million in 2027.
Insights from Leadership
Terry Mendez, CEO of Safe Harbor, emphasized the significance of this transaction, stating, “This is a strategic expansion designed to accelerate execution of our consulting and managed services strategy. Frank and David bring a proven operating business, existing revenue, and trusted industry relationships.” He noted that the performance-based incentives for the new leaders will directly support the company's growth objectives.
With over 60 years of combined experience in audit, assurance, advisory, and compliance consulting, Salluce and Smokler are set to bolster Safe Harbor's credibility. They have held senior positions at notable professional services firms including PwC, EY, and BDO, enhancing Safe Harbor’s access to essential financial institution relationships.
Strengthening Client Relationships Across the Board
David Smokler remarked, “420 IT Solutions was built to help regulated financial institutions and cannabis businesses navigate complex compliance environments effectively. By joining Safe Harbor, we gain the scale, platform, and distribution to expand those capabilities.”
Frank Salluce added that the collaboration presents a robust opportunity for scaling growth in consulting and managed services, particularly by enhancing relationships with both existing clients and new cannabis operators.
About Safe Harbor
Safe Harbor is a financial technology firm that exclusively services the cannabis industry, providing tailored banking, lending, and business solutions. As a leader in compliant cannabis banking in the U.S., Safe Harbor has processed over $26 billion in transactions across 41 states. Through its proprietary Cannabis Banking Solutions™ platform, Safe Harbor empowers cannabis operators to operate with clarity and confidence in their financial dealings.
It is essential to note that Safe Harbor is not a bank; rather, it collaborates with regulated banking partners to offer its services. For further information, visit www.SHFinancial.org.
Forward-Looking Statements
Certain information in this release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties, including, but not limited to, trends in the cannabis sector and growth prospects for Safe Harbor (NASDAQ: SHFS). Actual outcomes may differ materially from the expectations expressed in forward-looking statements, and Safe Harbor does not commit to updating any such statements.
Contact Information
For investor inquiries, please contact: ir@SHFinancial.org
For media inquiries, please reach out to: safeharbor@kcsa.com