SHF Holdings Inc. (NASDAQ:SHFS) shares skyrocketed 283.13% to $12.49 during after-hours trading on Tuesday, following the company’s announcement of a major equity financing agreement filed with the Securities and Exchange Commission.
Check out the current price of SHFS stock here.
Key Financing Agreement Details
On September 17, the Colorado-based company signed a Common Stock Purchase Agreement with CREO Investments LLC, a private equity firm, giving it the option to raise up to $150 million by selling shares. Under the agreement, SHF Holdings can sell its stock at 90 percent of whichever is lower, either the lowest trading price or the volume-weighted average price during specified periods.
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According to NASDAQ rules, the company can start by selling up to 582,899 shares, which represents 19.99% of its outstanding stock, without needing approval from shareholders. The agreement also has clauses that could allow the total commitment to be increased to $500 million if both parties agree.
Strategic Implications
Management indicated proceeds will fund working capital and general corporate purposes. The flexible structure allows the company to access capital based on market conditions and timing needs over a 36-month period.
The agreement will end automatically if certain conditions are met, such as the registration statement expiring, the purchase limit being reached, or the stock being removed from an approved trading market.
Stock Performance Highlights
According to Benzinga Pro data, SHFS rose 2.84% to close at $3.26 during regular trading on Tuesday. The stock reached a six-month high of $5.41 on March 24, and the current price of $3.26 shows a loss of 39.8%.
The investment firm has ranged from $1.84 to $11.74 over the past year. Its market capitalization is $9.51 million, with an average trading volume of 1.55 million shares.
Benzinga’s Edge Stock Rankings indicate that SHFS is experiencing long-term consolidation along with medium and short-term upward movement. Know how its momentum lines up with other well-known names.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
