SHF Holdings (SHFS) said Monday it has regained compliance with Nasdaq's minimum $2.5 million shareholders' equity requirement.

The company said that it completed recapitalization transactions in September, raising $6.8 million in new capital and eliminating $18.8 million of debt.

It added that the financing was led by accredited investors, with participation from management and board members.

SHF Holdings said it also restructured its board and executive team, cut over $3 million in annualized costs, established $150 million equity line of credit, and strengthened its liquidity and capital structure.

The recapitalization, along with an equity line of credit, provides management flexibility to pursue growth opportunities in its core cannabis banking and lending markets without near-term capital pressure, the company said.