XS Financial Inc. XSHLFName XSF a specialty finance company providing CAPEX and equipment finance solutions to cannabis companies in the United States, has closed a new $24 million line of credit 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 XS Financials’ existing $4 million line of credit with an FDIC-insured bank will be withdrawn, and the same bank will participate in $4 million in the new credit facility. Moreover, XSF entirely retired its $15 million line of credit with the Garrington Group concurrent with the closing of this credit facility.
The credit facility has a term of two 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 KvitzCEO of XS Financial said, “We are delighted to be working with Needham Bank as they build 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 the long term. Our ability to secure 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. With the industry experiencing a short-term funding downturn, we are pleased to continue financing our large-scale target borrowers for their critical expansion projects. »
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