Safe Harbor Financial Series B Preferred Conversion Price and Warrant Exercise Price Reset to $1.5528 Following Conclusion of Temporary Reduction Period

Rhea-AI Summary

Safe Harbor Financial (NASDAQ: SHFS) announced that the temporary reduction in the conversion price of its Series B Convertible Preferred Stock and the exercise price of associated Series B Warrants ended on July 31, 2026. Both prices have reverted to $1.5528. During the reduced-price period, holders converted 3,198 Series B Preferred shares into 4,920,005 common shares. After these conversions, 12,332,955 common shares and 27,134 Series B Preferred shares were outstanding, while no Series B Warrants were exercised.

Positive

• 3,198 Series B Preferred shares converted into 4,920,005 common shares
• Post-conversion capital structure: 12,332,955 common and 27,134 Series B Preferred shares outstanding
• Series B Preferred and warrant pricing standardized at a single level of $1.5528

Negative

• Common share count increased to 12,332,955 following issuance of 4,920,005 new shares
• No Series B Warrants were exercised during the temporary reduction period

Market Context

Historical SHFS reactions included 3.32% after Q1 earnings and -4.6% after lending expansion, adding...

Analysis

Historical SHFS reactions included 3.32% after Q1 earnings and -4.6% after lending expansion, adding a mixed comparison for this capital-structure announcement. Low short positioning was the platform’s additional risk context.

Key Figures

Series B conversion price: $1.5528 Series B warrant exercise price: $1.5528 Preferred shares converted: 3,198 shares +3 more

6 metrics

Series B conversion price $1.5528 Reverted effective July 31, 2026

Series B warrant exercise price $1.5528 Reverted effective July 31, 2026

Preferred shares converted 3,198 shares During the temporary reduction period

Common shares issued 4,920,005 shares From Series B Preferred Stock conversions

Common shares outstanding 12,332,955 shares Following the conversions

Series B Preferred shares outstanding 27,134 shares Following the conversions

Historical Context

5 past events · Latest: Jul 09 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 09	Conference presentation	Neutral	+3.8%	Company planned to showcase its cannabis banking operating model at an industry conference.
May 28	Board appointments	Positive	-5.2%	Two directors joined the board, expanding it from five to six members.
May 18	Q1 earnings	Positive	+3.3%	Quarterly revenue increased while operating expenses declined and equity improved.
Apr 30	Lending expansion	Positive	-4.6%	The company added commercial lending and financing capabilities for cannabis businesses.
Apr 24	Cannabis rescheduling	Positive	+9.6%	Federal rescheduling removed Section 280E deductions restrictions for qualifying medical operators.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent reactions were mixed, with three events aligned with their announcement sentiment and two diverging.

Key Terms

convertible preferred stock, conversion price, warrants, exercise price

4 terms

convertible preferred stock financial

"conversion price of its Series B Convertible Preferred Stock"

Convertible preferred stock is a special class of company shares that pays priority, usually fixed, payments to holders and can be exchanged later for a set number of common shares. It matters to investors because it combines steady income and added protection with the chance to share in a company’s upside; think of it as a hybrid between a bond that pays regularly and an option to convert into growth-oriented stock, where the conversion rules influence both potential gains and how much common shareholders’ ownership may be reduced.

conversion price financial

"The conversion price of the Series B Preferred Stock"

The conversion price is the fixed price at which a convertible security, like a bond or preferred stock, can be exchanged for shares of common stock. It acts like a set rate that determines how many shares an investor can receive if they choose to convert their investment. This helps investors understand the value and potential benefits of converting their securities into company shares.

warrants financial

"exercise price of associated common stock purchase warrants"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

exercise price financial

"the exercise price of the Series B Warrants"

The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DENVER, Aug. 05, 2026 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial ("Safe Harbor" or the "Company") (NASDAQ: SHFS), a leading fintech platform serving the banking, lending, and financial services needs of the regulated cannabis and hemp industries, announced the conclusion of the temporary reduction of the conversion price of its Series B Convertible Preferred Stock ("Series B Preferred Stock") and the exercise price of associated common stock purchase warrants ("Series B Warrants") effective July 31, 2026.

The conversion price of the Series B Preferred Stock and the exercise price of the Series B Warrants have both reverted to $1.5528 in accordance with the terms of the Series B Preferred Stock and Series B Warrants, as applicable.

"The conclusion of the temporary reduction period marks another step forward in strengthening our capital structure," said Terrance Mendez, Chief Executive Officer and Chief Financial Officer of Safe Harbor. "Series B holders converted a meaningful number of shares of Series B Preferred Stock into common stock during the reduction period. This conversion of preferred equity into common shares simplifies the capital structure and shifts equity into the shares counted in the market value of listed securities.”

During the temporary reduction period, holders converted 3,198 shares of Series B Preferred Stock into 4,920,005 shares of common stock. Following these conversions, there were 12,332,955 shares of common stock and 27,134 shares of Series B Preferred Stock outstanding.

No Series B Warrants were exercised during the temporary reduction period.

About Safe Harbor:

Safe Harbor is a cannabis-exclusive financial platform delivering smarter banking, lending, payments and business services tailored to how the cannabis industry actually operates. As one of the original pioneers of compliant financial operations support and cannabis banking consulting in the U.S., Safe Harbor has assisted in the processing of more than $35 billion in cannabis-related depository funds across 41 states and territories. Through its proprietary Cannabis Banking Solutions™ Platform and network of regulated financial institution partners, Safe Harbor empowers cannabis operators to gain clarity, control and confidence in their financial operations. From daily banking to long-term growth, Safe Harbor provides real solutions and personal support, built exclusively for cannabis. Safe Harbor is a financial technology company, not a bank. Banking services are provided by our partner financial institutions. For more information, visit shfinancial.org.

Cautionary Statement Regarding Forward-Looking Statements:

Certain information contained in this press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S. and state laws, rules, regulations and guidance relating to Safe Harbor's services; Safe Harbor's growth prospects and Safe Harbor's market size; Safe Harbor's projected financial and operational performance, including relative to its competitors and historical performance; the anticipated exercise of outstanding warrants and the timing or amount of any related proceeds; success or viability of new product and service offerings Safe Harbor may introduce in the future; the impact of volatility in the capital markets, which may adversely affect the price of Safe Harbor's securities; the outcome of any legal proceedings that have been or may be brought by or against Safe Harbor; and other statements regarding Safe Harbor's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "outlook," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor's filings with the U.S. Securities and Exchange Commission. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Safe Harbor Investor Relations Contact:

ir@SHFinancial.org

Safe Harbor Media Relations Contact:

safeharbor@kcsa.com

FAQ

What did Safe Harbor Financial (NASDAQ: SHFS) announce about its Series B conversion price on August 5, 2026?

Safe Harbor Financial announced its Series B Preferred conversion price reverted to $1.5528 after a temporary reduction period ended July 31, 2026. According to Safe Harbor Financial, the associated Series B Warrant exercise price also reset to $1.5528 in line with existing terms.

How many Series B Preferred shares were converted to common stock for SHFS during the temporary reduction period?

Holders converted 3,198 Series B Preferred shares into 4,920,005 common shares during the temporary reduction period. According to Safe Harbor Financial, these conversions occurred before the prices reverted to $1.5528 on July 31, 2026, impacting the company’s equity mix.

What is the new share count of Safe Harbor Financial (SHFS) after the Series B conversions?

After the conversions, Safe Harbor Financial reported 12,332,955 common shares and 27,134 Series B Preferred shares outstanding. According to Safe Harbor Financial, these figures reflect the impact of converting 3,198 Series B Preferred shares into 4,920,005 common shares during the temporary period.

Were any Series B Warrants of SHFS exercised during the temporary reduction period?

No, none of the Series B Warrants were exercised during the temporary reduction period. According to Safe Harbor Financial, only the Series B Preferred Stock was converted, resulting in 4,920,005 new common shares, while all Series B Warrants remained unexercised in that timeframe.

How does the Series B Preferred conversion affect Safe Harbor Financial’s capital structure?

The conversions increased common shares to 12,332,955 and reduced outstanding Series B Preferred shares to 27,134. According to Safe Harbor Financial, shifting preferred equity into common shares simplifies the capital structure and moves more equity into the market value of listed securities.

What is the exercise price of Safe Harbor Financial’s Series B Warrants after July 31, 2026?

The exercise price of Safe Harbor Financial’s Series B Warrants reverted to $1.5528 after July 31, 2026. According to Safe Harbor Financial, this reset followed the conclusion of a temporary reduction period and aligns with the original Series B Warrant terms.