XS Financial Inc. (OTCQB:XSHLF) (CSE:XSF) a specialty finance company providing CAPEX and equipment financing solutions to cannabis companies in the United States, has entered into a new $24 million line of credit with Needham Bank committing $20 million and acting as the administrative agent. XS Financials' existing $4 million line of credit with an FDIC-insured bank will be retired, and the same bank will participate $4 million in the new credit facility. In addition, XSF fully retired its $15 million line of credit with the Garrington Group concurrently with the closing of this credit facility.
The credit facility has a term of two years, expiring August 2024. Loans made under the line of credit 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 may be prepaid with no penalty at any time.
XS Financial intends to use loan proceeds, together with cash on hand, to fund additional CAPEX and equipment leases with new and existing customers.
David Kivitz, CEO of XS Financial stated: "We are pleased to be working with Needham Bank, who is building one of the premier banking platforms for the U.S. cannabis market. This credit facility provides XS Financial with greater financial flexibility and positions us for long-term success. Our ability to close this credit facility with Needham Bank with favorable pricing and terms speaks to our financial strength and the growing number of high-quality customers we support, including several of our industry's largest companies. Additionally, with many capital sources in the industry experiencing a near-term pullback in financing, we are thrilled to continue funding our target borrowers at scale for their critical expansion projects."
Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels
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