LOS ANGELES, CA / ACCESSWIRE / August 18, 2022 / XS Financial Inc. (“XS Financial”, “XSF” or the “Company”) (CSE:XSF) (OTCQB:XSHLF), a specialty finance company providing CAPEX and equipment finance solutions to cannabis companies in the United States, today announced that it has entered into a new $24 million line of credit (“credit facility ”) with Needham Bank committing $20 million and acting as administrative agent. XS Financials’ existing $4 million line of credit with an FDIC-insured bank will be withdrawn, and the same bank will participate in $4 million in the new credit facility. In addition, XSF fully withdrew its previously announced $15 million line of credit with the Garrington Group concurrently with the closing of this credit facility. All figures are in US dollars.
The credit facility has a term of two (2) years and expires in August 2024. Loans made under the credit facility will bear interest at an annual rate equal to the Wall Street Journal prime rate plus one percent (1. 0%), with a floor of six percent (6%) and can be prepaid without penalty at any time.
XS Financial intends to use the loan proceeds, along with available cash, to fund additional CAPEX and equipment leases with new and existing customers.
David Kivitz, CEO of XS Financial commented: “We are excited to work with Needham Bank, which is building one of the leading banking platforms for the US cannabis market. This credit facility provides XS Financial with greater financial flexibility and positions us for long-term success. Our ability to close this credit facility with Needham Bank at favorable prices and terms is a testament to our financial strength and the growing number of high quality customers we support, including many of the largest companies in our industry. financing, we are delighted to continue financing our large-scale target borrowers for their critical expansion projects.”
James Daley, SVP – Director Structured Finance at Needham Bank commented: “This credit facility will allow XS Financial Inc. to continue to grow its business and provide it with the financing it needs to continue providing CAPEX financing solutions to cannabis companies in the United States. It was a pleasure to working with their team to close this line of credit, and I look forward to building a rewarding relationship with XS Financial for many years to come.”
Joseph Campanelli, Chairman, President and CEO of Needham Bank, said: “Needham Bank is delighted to once again serve the cannabis industry by providing loans to XS Financial. This credit facility is a strong indication of James and our lenders’ ability to offer credit solutions tailored to a business’s unique needs and underscores the strength of our national banking platform in the growing cannabis market. . »
About Needham Bank
Needham Bank offers a range of state-of-the-art products and services that businesses and consumers use to manage their financial needs. We have the financial expertise typically found in much larger institutions and the local knowledge and commitment you can only find in a community bank. Known as ‘Builder’s Bank’, Needham Bank has been helping individuals, businesses and non-profit organizations build their future since 1892. For more information, please visit https://www.needhambank.com /. Needham Bank is a member of the FDIC and DIF.
About XS Financial
Founded in 2017, XS Financial specializes in providing CAPEX financing solutions to cannabis companies in the United States, including growers, processors, manufacturers and testing labs. Additionally, XSF has partnered with more than 250 original equipment manufacturers (OEMs) through its network of preferred supplier partnerships. This powerful dynamic provides an end-to-end solution for customers that results in recurring revenue, strong profit margins and a proven business model for XSF stakeholders. The subordinate voting shares of the Company are traded on the Canadian Securities Exchange under the symbol “XSF”. For more information, visit: www.xsfinancial.com.
For any request, please contact:
Chief executive officer
E-mail: [email protected]
This press release contains “forward-looking information” and may also contain statements that may constitute “forward-looking statements”, collectively “forward-looking information”, within the meaning of applicable Canadian securities laws. This forward-looking information is not representative of historical facts or information or of the current situation, but rather represents beliefs and expectations regarding future events with respect to the business, industry and markets in which XS Financial operates, as well as that the plans or objectives of management, many of which, by their nature, are inherently uncertain. Generally, such forward-looking information can be identified by the use of terms such as “plans”, “expects” or “does not expect”, “is planned”, “budget”, “expected” , “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and phrases or may contain statements that certain actions , events or results “could”, “could”, “will”, “could” or “will”, “continue”, “occur” or “will be carried out”. Forward-looking information contained herein may include, but is not limited to, without limitation, any additional leasing opportunity and the ability to capitalize thereon and the timing thereof. Forward-looking information is not a guarantee of future performance and involves risks, uncertainties and difficult assumptions. to be expected. Accordingly, readers should not rely unduly to forward-looking information, which is qualified in its entirety by this cautionary statement. XS Financial Inc., undertakes no obligation to publicly release revisions to update voluntary forward-looking information, except as required by applicable securities law.
Neither the Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this release.
THE SOURCE: XS Financial