XS Financial Inc., a specialty finance company providing CAPEX financing solutions including equipment leasing to cannabis companies in the United States, and urban-gro, Inc., a fully integrated architectural, engineering and cultivation systems integration company focused on the indoor Controlled Environment Agriculture (CEA) market have entered into a strategic partnership allowing for XS Financial to provide urban-gro customers with CAPEX leasing solutions and XS customers with access to urban-gro's vendors and enhanced buying power.
XS Financial and urban-gro, Inc. are developing strong track records of working with many of the industry's largest multi-state (MSO) and single-state operators. The two companies have demonstrated shared success by the financing of equipment purchasing for a shared MSO customer.
Bradley Nattrass, Chairman and CEO of urban-gro, said, “In response to our client's request to provide financing solutions, I am excited to launch our new Financial Services division, and our strategic alliance with XS Financial further strengthens our purchasing power with leading horticulture manufacturers, and allows us to continue to exceed client's expectations. In addition to strengthening the value of the solution that we provide our clients, we believe XS Financial's competitively priced access to capital for operators will broaden our reach within the cannabis and food-focused indoor CEA Market and further assist in minimizing and eliminating supply chain delays.”
David Kivitz, CEO of XS Financial, said, “This agreement with urban-gro will allow XS Financial to further expand our reach and ability to offer financing solutions to qualified customers within indoor cannabis CEA. In addition, new and existing XS customers will benefit greatly from urban-gro's strong buying power, diversified service offerings backed by deep domain experience and credibility in our industry.”
The company continues to scale its syndication desk, providing XS with greater capital markets access to non-recourse and non-dilutive financing. David Kivitz, an officer and director of the Corporation, participated with a $200,000 investment. In total, the company has syndicated over $5.7 million of its existing leases.