XS Financial Inc. (CSE:XSF) (OTCQB:XSHLF) has entered into a $15 million line of credit with bank lenders.
The Los Angeles-based specialty finance company providing CAPEX and equipment financing solutions to cannabis companies in the United States intends to use loan proceeds and cash on hand to fund additional CAPEX and equipment leases with new and existing customers.
"This credit facility provides XS Financial with additional resources to expand our market-leading portfolio of equipment leases," David Kivitz, CEO of XS Financial commented. "Our ability to close this credit facility with favorable pricing and terms in the current environment exhibits our financial strength and the high-quality customers we support, including several of our industry's largest companies. We are thrilled to continue funding our existing and target borrowers at scale for their critical expansion projects when other capital sources are slowing."
Meanwhile, according to data from the federal financial watchdog, the number of banks and credit unions reportedly working with cannabis companies is at a record high, with a total of 812 financial institutions reported working with cannabis businesses in the second quarter of 2023.
The news comes ahead of the Senate Banking Committee's scheduled vote on cannabis banking reform, which will take place on Wednesday, Sept. 27, the same day a slew of top executives, entrepreneurs and marijuana industry stakeholders will meet at Beniznga's cannabis event in Chicago.
Related News
- Cashing In On Cannabis: Urban-Gro Secures Over $2M In Deal With XS Financial, What's Next?
- XS Financial Provides $7.6M CAPEX Financing To PharmaCann
- XS Financial Amends Unsecured Convertible Notes, Extends Maturity Date
- XS Financial Touts 140% YoY Increase In Revenue Despite Cannabis Industry Slowdown
The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.
Photo: Courtesy of Josh Appel on Unsplash