XS Financial Inc. announce it has completed its previously announced private placement of unsecured convertible notes in the aggregate principal amount of $43.5 million, of which $33.5 million will be funded at closing and $10 million is available on a delayed draw on the same terms until June 30, 2022. The financing was led by a large institutional investor, with additional participation from an existing XSF Strategic Partner, urban-gro, Landrace Financial, Bengal Capital and KEY Investment Partners.

XS Financials' pipeline currently exceeds $100 million in CAPEX financing demand, and the company has reviewed in excess of $300 million of transactions in 2021. The net proceeds from the offering will primarily be used to finance capital-expenditure (CAPEX) and equipment purchases for existing customers and the strong demand from the growing pipeline of credit-worthy cannabis operators in the United States.

David Kivitz, CEO of XS Financial, said, "This financing is a transformative step for XS Financial. We are excited to have received this investment from a prominent institutional asset manager and numerous cannabis industry-focused investors, who we believe will add significant value to the company. Additionally, we are thrilled to continue supporting our numerous multi-state (MSO) and single-state (SSO) customers as they expand while also executing on our growing pipeline of financing opportunities. With this completed $43.5 million financing and our recently announced $15 million line of credit, XS Financial is well-capitalized to expand our position as the industry-leading source for non-dilutive CAPEX and equipment funding for the rapidly growing U.S. cannabis market."

Compass Point Research & Trading, LLC and Gramercy Capital Group, LLC (through INTE Securities LLC, member FINRA/SIPC) acted as financial advisors to XSF, and Dentons US LLP and Fogler Rubinoff LLP served as legal advisors to XSF. A.G.P./Alliance Global Partners acted as an advisor to urban-gro.