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XS Financial Posts Record Year With Over $147MM in Capex Financing Commitments

February 02, 2023, 07:20 AM
Filed Under: Cannabis

XS Financial, a specialty finance company providing equipment financing solutions to cannabis companies in the United States, announced the following updates as of the year ended December 31, 2021. All amounts are expressed in U.S. dollars.

Advancing its position as a leading CAPEX financing company to the legal U.S. cannabis industry, XS Financial is pleased to announce that for the year ended December 31, 2022, the Company completed $68.0 million in new lease transactions, a 167% YoY increase. In addition, XSF closed on new commitments of $147.4 million, a 36% YoY increase, which will significantly drive new lease transactions in 2023.

XSF made significant progress in increasing its funding capacity while reducing its incremental borrowing cost. In 2022, the Company closed an upsized $39 million line of credit with an FDIC-insured bank and received its final $10 million funding tranche from convertible notes the previous year. In addition, due to the increased funding capacity, XSF retired its preexisting line of credit from a private credit fund, which had a higher borrowing rate than its new credit facility. This decrease in borrowing rate helped the Company achieve its first quarter of positive Net Distributable Earnings in 3Q22.

David Kivitz, CEO of XS Financial, commented: "On the back of a record year for the business, we are well-positioned for growth in 2023. We provided several of our largest customers increased commitments for their growth and recently closed our largest transaction since inception, a $50 million CAPEX facility for Curaleaf. In addition, we are engaged in numerous discussions with several new prospective borrowers and continue seeing a robust demand pipeline for our product. Further, we focus on increasing our access to non-dilutive financing with our existing and new bank partners to optimally fund our significant customer commitments. We are looking forward to 2023, which should be another banner year for the business.

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