XS Financial Receives $10 Million from Delayed Drawdown of Unsecured Convertible Notes

Rhea-AI Summary

XS Financial Inc. announced the receipt of a delayed draw of $10 million as part of its $43.5 million unsecured convertible notes financing. This financing, led by a large institutional investor, originally funded $33.5 million at the closing on November 1, 2021. The company, specializing in CAPEX financing for U.S. cannabis firms, has partnered with over 250 OEMs, contributing to recurring revenues and strong profit margins.

Positive

• Received $10 million from delayed drawdown, enhancing cash flow.
• Total unsecured convertible notes financing amounts to $43.5 million, providing substantial capital.
• Strong partnerships with over 250 OEMs, ensuring recurring revenues.

Negative

• None.

LOS ANGELES, CA / ACCESSWIRE / October 10, 2022 / XS Financial Inc. ("XS Financial", "XSF" or the "Company") (CSE:XSF)(OTCQB:XSHLF), a specialty finance company providing CAPEX and equipment financing solutions to cannabis companies in the United States, announces receipt of its delayed draw of $10 million. The aggregate principal amount of the unsecured convertible notes financing was $43.5 million, of which $33.5 million was funded at closing on November 1, 2021. The financing was led by a large institutional investor, with additional participation from strategic partners including, urban-gro (NASDAQ:UGRO), Landrace Financial, Bengal Capital, and KEY Investment Partners. All amounts are in US Dollars.

About XS Financial

Founded in 2017, XS Financial specializes in providing CAPEX financing solutions to cannabis companies in the United States, including cultivators, processors, manufacturers, and testing laboratories. In addition, XSF has partnered with over 250 original equipment manufacturers (OEM) through its network of Preferred Vendor partnerships. 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 subordinate voting shares are traded on the Canadian Securities Exchange under the symbol "XSF". For more information, visit: www.xsfinancial.com.

For inquiries please contact:

David Kivitz
Chief Executive Officer
Tel: 1-310-683-2336
Email: ir@xsfinancial.com

Antony Radbod
Chief Operating Officer
Tel: 1-310-683-2336
Email: 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/719584/XS-Financial-Receives-10-Million-from-Delayed-Drawdown-of-Unsecured-Convertible-Notes

FAQ

What is the significance of the $10 million delayed draw for XS Financial (XSHLF)?

The $10 million delayed draw enhances XS Financial's cash flow and supports its financing operations.

How much total financing did XS Financial (XSHLF) secure from the unsecured convertible notes?

XS Financial secured a total of $43.5 million from the unsecured convertible notes financing.

Who led the financing round for XS Financial (XSHLF)?

The financing round was led by a large institutional investor.

What industry does XS Financial (XSHLF) provide financing solutions for?

XS Financial provides CAPEX and equipment financing solutions to cannabis companies in the United States.

What is the significance of XS Financial's partnership with urban-gro (UGRO)?

XS Financial's partnership with urban-gro is part of its strategy to enhance its financing solutions for cannabis companies.