Safe Harbor Financial ("Safe Harbor" or the "Company"), a leading financial services provider to the cannabis industry, today announced the closing of a $5 million senior secured loan to Solar Cannabis Co., an established vertically-integrated cannabis operator headquartered in Somerset, Massachusetts. Solar Cannabis will use the funds to further accelerate its growth.

This transaction marks the evolution of Safe Harbor's senior secured lending program, which was established to provide loans to cannabis operators in states in which cannabis is legal. Solar Cannabis' loan is the first extended by Safe Harbor outside of its home state of Colorado. The terms of the loan were not disclosed.

Safe Harbor, through its predecessor entity, began offering loan services in 2020 with the buildout of its commercial lending program in late 2021 to help cannabis operators overcome their historic reliance on expensive, non-traditional forms of capital. Since initiating the program, the Company has developed an actionable pipeline of approximately $500 million across nine states from both new as well as existing clients.

"We are excited to provide this extension of credit to Solar Cannabis. We believe, based on our due diligence process, the company has opportunities for continued growth," said Paul Penney, Chief Investment Officer of Safe Harbor. "Safe Harbor is ushering in a new wave of commercial capital for the cannabis industry with leading compliance and underwriting alongside a low cost of capital advantage."

Sundie Seefried, Founder and CEO of Safe Harbor, stated, "Our senior secured lending program is a key part of our efforts to increase our services to our clients. We are solving the cannabis industry's most significant problem – unreasonable costs of capital that meaningfully inhibit growth. We want to make sure those terms are over for our clients, and the industry has a reasonable lending environment moving forward."

Edward Dow, CEO of Solar Cannabis, commented, "Obtaining this loan from Safe Harbor gives us the resources we need to continue expanding our business in Massachusetts. It was a pleasure working with experienced cannabis executives Paul and Sundie who understand thoroughly the need for competitive rates and flexible structuring for cannabis operators."

Safe Harbor was formed to provide an unmet need – compliant banking and financial services to the rapidly expanding U.S. cannabis industry. Over the past seven years (including operations conducted through its parent, Partner Colorado Credit Union), the Company has processed more than $12 billion in transactions, including approximately $3.6 billion in 2021.

Safe Harbor has grown to nearly 600 clients spanning 20 states, serving both the medical and recreational cannabis markets. As legislative reform unfolds in the U.S., the Company is uniquely positioned as the trusted, leading standard for cannabis financial services.