XS Financial Obtains Revolving Credit Facility to Support Continued Growth of Its Leasing Portfolio
Rhea-AI Summary
XS Financial Inc. has closed a US$2 million senior secured revolving credit facility with an FDIC insured bank. This facility, expiring in November 2022, offers loans at an interest rate of at least 8.0% per annum. The funds will support equipment leases for cannabis companies. COO Antony Radbod emphasized that this facility enhances financial flexibility and positions XS Financial for long-term growth, reflecting the positive shift in the cannabis industry.
Positive
- Successfully closed a US$2 million revolving credit facility with favorable terms.
- Increased financial flexibility to fund equipment leases with new and existing customers.
- Positioned for long-term success in the growing cannabis financing market.
Negative
- None.
News Market Reaction – XSHLF
On the day this news was published, XSHLF declined 16.88%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
LOS ANGELES, CA / ACCESSWIRE / November 23, 2020 / XS Financial Inc. ("XS Financial", "XSF" or the "Company") (CSE:XSF)(OTCQB:XSHLF), a specialty finance company providing equipment leasing solutions to cannabis and hemp companies in the United States, announced today that it has successfully closed a US
The loans under the credit agreement contain customary financial covenants for transactions of this type, including limitations with respect to indebtedness, liens, and disposition of assets.
XS Financial intends to use such loan proceeds, together with cash on hand, to fund additional equipment leases with new and existing customers.
Antony Radbod, COO of XS Financial, commented: "This credit facility provides XS Financial with greater financial flexibility and better positions us for long-term success. We believe our ability to secure this revolving facility with favorable pricing and terms speaks to both the credibility of XS Financial, the shifting sentiment toward the industry we serve, and the growing number of high-quality customers we finance, including large publicly traded multi-state operators. We are excited to close our first credit facility with an FDIC insured bank and anticipate gaining access to additional credit lines as we scale our leasing portfolio".
About XS Financial
Founded in 2017, XSF specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers and testing laboratories. In addition, XSF 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 XSF stakeholders. The Company's common shares are traded on the Canadian Securities Exchange under the symbol "XSF" and in the United States on the OTCQB under the symbol " XSHLF." For more information, visit: www.xsfinancial.com.
For inquiries please contact:
XS Financial Inc.
David Kivitz
Chief Executive Officer
Antony Radbod
Chief Operating Officer
310.683.2336
ir@xsfinancial.com
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, any additional leasing opportunities and the ability to capitalize on such and the timing thereof. Forward-looking information is not a guarantee of 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 Inc., does not undertake any obligation to release publicly any revisions for updating any 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.
SOURCE: XS Financial
View source version on accesswire.com:
https://www.accesswire.com/617830/XS-Financial-Obtains-Revolving-Credit-Facility-to-Support-Continued-Growth-of-Its-Leasing-Portfolio
FAQ
What is the amount of the credit facility XS Financial closed?
What is the interest rate for the credit facility from XS Financial?
What is the expiration date of the XS Financial credit facility?
How does XS Financial plan to use the proceeds from the credit facility?
What is the significance of the credit facility for XS Financial?
