XS Financial Inc., a specialty finance company providing CAPEX and equipment financing solutions to cannabis companies in the United States, announced it has entered into a new $24 million line of credit (Credit Facility) 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 previously announced $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 1 percent, with a floor of 6 percent, 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, commented: "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."

James Daley, Senior Vice President, Director Structured Finance of Needham Bank, said, "This Credit Facility will allow XS Financial Inc. to continue to grow their business and set them up with the funding they need to continue providing CAPEX financing solutions to cannabis companies in the US. It has been a pleasure working with their team on closing this line of credit, and I look forward to building a rewarding relationship with XS Financial for many years to come."

Joseph Campanelli, Chairman, President & CEO of Needham Bank, said, "Needham Bank is excited to once again be serving the cannabis sector by providing lending to XS Financial. This Credit Facility is a strong indication of James' and our lenders' ability to offer credit solutions tailored to the unique needs of a company and underscores the strength of our nationwide banking platform in the fast-growing cannabis market."