Safe Harbor Financial SHFS issued a $1.07 million secured credit facility to a Missouri-based cannabis operator, marking the first tranche in a larger $5 million commitment designed to refinance existing senior debt.

The loan is backed by a portfolio including four dispensaries and a manufacturing facility, though the name of the borrower was not disclosed.

Safe Harbor has emerged as a relevant player in providing cannabis operators with competitive financing solutions in a highly regulated industry. The new facility aims to reduce borrowing costs for the Missouri operator, ultimately enabling them to streamline operations and focus on growth within the state’s expanding cannabis market.

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John Foley, senior VP of commercial lending at Safe Harbor, emphasized the significance of such financing solutions for cannabis operators, who frequently face challenges in accessing capital.

“Our competitively-priced financing solutions provide cannabis operators—who are often underserved by traditional banking institutions—with the means to achieve their business goals," Foley stated. "This transaction reflects our commitment to fostering growth in the cannabis sector, offering cannabis businesses the access they need to bank-quality financial services."

Safe Harbor's approach aims to understand the requirements of operators in an industry that often struggles to meet their financial needs.

"Offering cannabis operators access to capital is a major component of Safe Harbor's long-term strategy to support the evolving needs of the cannabis industry, to grow our credit portfolio, and deliver value to our investors," Foley said.

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