LOS ANGELES: XS Financial Inc. has successfully closed a US$2million senior secured revolving credit facility, with an FDIC insured bank, which has a term of two (2) years, expiring in November 2022.
Loans made under the revolving facility will bear interest at an annual rate equal to the greater of i) eight percent (8.0%) per annum or ii) the Wall Street Journal Prime plus four percent (4.0%) and may be prepaid with no penalty at any time.
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”.
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.” www.xsfinancial.com