XS Financial Announces Issuance of Subordinate Voting Shares

Rhea-AI Summary

XS Financial Inc. announced the issuance of 736,002 subordinate voting shares at a price of $0.1875 per share, aimed at settling outstanding debt to its management and Board of Directors. The shares will be subject to a statutory hold period until April 8, 2021. XS Financial, founded in 2017, specializes in equipment leasing for the cannabis and hemp sectors in the U.S., providing a full range of consulting services. This approach generates recurring revenues and strong profit margins for stakeholders.

Positive

• Settlement of debt through equity issuance enhances financial flexibility.
• Specialized equipment leasing model targets a growing cannabis market.

Negative

• Dilution of existing shareholders due to the issuance of new shares.

News Market Reaction – XSHLF

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On the day this news was published, XSHLF declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

LOS ANGELES, CA / ACCESSWIRE / December 7, 2020 / XS Financial Inc., ("XS Financial", "XS" or the "Company") (CSE:XSF)(OTCQB:XSHLF), a specialty finance company engaged in equipment leasing in the United States, announced today that it has issued, 736,002 subordinate voting shares ("common shares") of XSF at a price of $0.1875 per share. The securities were issued to settle outstanding debt to members of the management team and Board of Directors. The common shares issued are subject to a statutory hold period expiring on April 8, 2021.

About XS Financial
Founded in 2017, XS specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers, testing laboratories, among others. In addition, XS provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers, which results in recurring revenues, strong profit margins, and a proven business model for XS stakeholders.

Visit www.xsfinancial.com for more information or contact XS Financial at:

David Kivitz
Chief Executive Officer

Antony Radbod
Chief Operating Officer

Tel: 1-310-683-2336
Email: ir@xsfinancial.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information
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 legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent the beliefs and expectations regarding future events about the business and the industry and markets in which XS Financial operates, as well as 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 terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information contained herein may include but is not limited to, the anticipated inflow of leads from the California market and the ability to sign any new leases and the timing thereof.

Forward-looking information does not guarantee future performance and involve risks, uncertainties and assumptions which are difficult to predict. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. XS Financial does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.

This press release does not constitute an offer to sell nor a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Not for distribution to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws.

SOURCE: XS Financial Inc.

View source version on accesswire.com:
https://www.accesswire.com/619592/XS-Financial-Announces-Issuance-of-Subordinate-Voting-Shares

FAQ

What was the purpose of XS Financial's share issuance on December 7, 2020?

The share issuance was to settle outstanding debt to the management team and Board of Directors.

What price did XS Financial set for the newly issued shares?

The newly issued shares were priced at $0.1875 each.

When will the shares issued by XS Financial be released from the statutory hold period?

The shares will be released from the statutory hold period on April 8, 2021.

What sector does XS Financial focus on for equipment leasing?

XS Financial focuses on the cannabis and hemp sectors for equipment leasing.

What type of financial services does XS Financial provide?

XS Financial provides equipment leasing and consulting services related to equipment selection and procurement.