Alwaysbmikki
3 years ago
Monthly Recurring Payments WOW
$163,575
$269,044
XS Financial Announces $2.5 Million Private Placement Led by Gravitas Securities, Canaccord Genuity With Insiders To Participate and Provides Corporate Update
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XSHLF
+28.95%
Thu, February 4, 2021, 7:00 AM·6 min read
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XSHLF
+28.95%
LOS ANGELES, CA / ACCESSWIRE / February 4, 2021 / XS Financial Inc. ("XS Financial", "XSF" or the "Company") (CSE:XSF) (OTCQB:XSHLF), an equipment finance and leasing company serving cannabis and hemp companies in the United States, is pleased to announce that it has entered into an engagement letter with Gravitas Securities Inc. and Canaccord Genuity Corp. (the "Co-Lead Agents") pursuant to which it proposes to complete a private placement (the "Offering") of up to 8,333,334 units ("Units") at a price of C$0.30 per Unit to raise aggregate gross proceeds of up to C$2,500,000, subject to increase by up to an additional C$375,000 pursuant to an over-allotment option that has been granted to the Co-Lead Agents. Each Unit will consist of one subordinate voting share of the Company and one share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire one additional subordinate voting share of the Company at an exercise price of $0.45 CAD until the date which is two years from the closing date of the Offering. The Offering is expected to close on or about the week of March 1st, 2021 or such other date as the Co-Lead Agents and the Company may agree and may be closed in one or more tranches.
XS Financial Management and insiders will be leading participation in the Offering and continue to be fully committed as the leading provider of equipment and lease financing to cannabis and hemp companies in the United States.
Portfolio Highlights (Figures in USD)
As of September, 2020
As of January, 2021
Gross Lease Receivables
$3,844,293
$10,915,885
Number of Active Leases
8
19
Average Lease Size by Customer
$502,618
$1,495,863
Monthly Recurring Payments
$163,575
$269,044
Corporate Highlights (Figures in USD)
Revolving Credit Facility from Federal Deposit Insurance Corporation (FDIC) Insured Bank: Successfully closed a US$2 million senior secured revolving credit facility, with an FDIC insured bank, which has a term of two (2) years, expiring in November 2022. Loans made under the revolving facility will bear interest at an annual rate equal to the greater of i) eight percent (8.0%) per annum or ii) the Wall Street Journal Prime plus four percent (4.0%) and may be prepaid with no penalty at any time.
Columbia Care Lease Facility: The Company signed a $5M lease facility agreement with Columbia Care as announced on December 3rd, 2020.
PharmaCann Lease Upsize: Provided additional financing to PharmaCann Inc. increasing the $3.4 million lease facility announced May 12, 2020, by $1.5 million.
New Vendors Added to Preferred Vendor Program: Continued to add new partners to the rapidly growing list of Original Equipment Manufacturers ("OEM") with the addition of automation, cultivation, and HVAC companies.
David Kivitz, CEO of XS Financial, commented: "This offering will further strengthen our position as the leading capex and equipment financing company to U.S. cannabis and hemp operators. Over the past four months, we have increased our aggregate funding by nearly 100% and have an additional $8 million committed to existing customers. We are pleased to support some of the largest single and multi-state operators with their capex and expansion needs and look forward to adding new customers in 2021."
The Co-Lead Agents will act as agents of the Company in connection with the Offering. In consideration of the services of the Co-Agents, the Company will pay a cash commission equal to 8% of the gross proceeds of the Offering and issue such number of broker warrants ("Broker Warrants") as are equal to 8% of the aggregate number of Units sold pursuant to the Offering, calculated in each case without reference to Units sold to purchasers on the Company's "president's list" (the "President's List"). Each Broker Warrant shall entitle the holder to acquire one Unit at an exercise price of C$0.30 for a period of two years following the closing of the Offering.
The Offering and related matters remain subject to various closing conditions, including the receipt of applicable regulatory approvals. The Offering is expected to close on or about the week of March 1st, 2021 or such other date as the Co-Lead Agents and the Company may agree and may be closed in one or more tranches. Concurrently with the closing of the Offering, the Company may also complete a separate offering of units ("PVS Units") to certain purchasers in the United States in lieu of Units, in order to preserve the foreign private issuer status of the Company under applicable securities laws. The PVS Units will be comprised of proportionate voting shares and share purchase warrants exercisable to acquire proportionate voting shares and will bear the same terms and conditions as the Units subject to adjustment to reflect the ratio of one (1) proportionate voting share for every 1,000 subordinate voting shares.
About XS Financial
Founded in 2017, XSF specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers and testing laboratories. In addition, XSF provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers which results in recurring revenues, strong profit margins, and a proven business model for XSF stakeholders. The Company's common shares are traded on the Canadian Securities Exchange under the symbol "XSF" and in the United States on the OTCQB under the symbol " XSHLF." For more information, visit: www.xsfinancial.com.
For inquiries please contact:
David Kivitz
Chief Executive Officer
Antony Radbod
Chief Operating Officer
Tel: 1-310-683-2336
Email: ir@xsfinancial.com
Forward-Looking Information
This press release contains "forward-looking information" and may also contain statements that may constitute "forward-looking statements", collectively "forward-looking information", within the meaning of applicable Canadian securities legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent the beliefs and expectations regarding future events about the business and the industry and markets in which XS Financial operates, as well as plans or objectives of management, many of which, by their nature, are inherently uncertain. Generally, such forward-looking information can be identified by the use of terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information contained herein may include but is not limited to, any additional leasing opportunities and the ability to capitalize on such and the timing thereof. Forward-looking information is not a guarantee of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. XS Financial Inc., does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: XS Financial
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https://www.accesswire.com/627809/XS-Financial-Announces-25-Million-Private-Placement-Led-by-Gravitas-Securities-Canaccord-Genuity-With-Insiders-To-Participate-and-Provides-Corporate-Updatehttps://finance.yahoo.com/news/xs-financial-announces-2-5-130000410.html
Alwaysbmikki
3 years ago
Revenue grew to $3,858,329 from $663,468 in Q3/19, an increase of 482% year over year
XS Financial Reports Third Quarter 2020 Financial Results
Mon, November 30, 2020, 7:00 AM CST
Strong revenue growth and positive adjusted EBITDA underscore solid third quarter
LOS ANGELES, CA / ACCESSWIRE / November 30, 2020 / XS Financial Inc. ("XS Financial", "XSF" or the "Company") (CSE:XSF) (OTCQB:XSHLF), a specialty finance company providing equipment leasing solutions to cannabis and hemp companies in the United States, is pleased to announce results for the quarter ended September 30, 2020 ("Q3/20") and for the nine-month period ended September 30, 2020 ("YTD/20"). All amounts are expressed in U.S. dollars unless indicated otherwise.
Q3/20 Highlights
Revenue grew to $3,858,329 from $663,468 in Q3/19, an increase of 482% year over year
Monthly recurring revenue grew to $164,076 from $57,250 in Q3/19, a 187% increase year over year
Gross profit was $76,053 versus a gross loss of $55,163 in the previous year
Adjusted EBITDA1 for the quarter was $44,910
Adjusted net loss[1] for the quarter was $266,509, or nil per share, demonstrating the 5th consecutive quarter of improving operational results
4 new leases signed during the quarter totaling $2,764,451 of new leasing receivables
Total gross receivables from active leases of $3,844,293 at the end of Q3/20
Strong balance sheet at quarter-end with $1.56MM of unencumbered cash and marketable securities
Post-Quarter Highlights:
Entered into a $5 million leasing agreement with Skymint Brands f/k/a Greenpeak Innovations (Michigan's leading vertically integrated cannabis operator), as announced on October 13, 2020
Entered into a $5 million leasing agreement with a large, publicly traded multi-state operator focused on the Nevada and Massachusetts markets, as announced on November 2, 2020
Improved financial flexibility with the closing of a $2 million senior secured revolving credit facility with an FDIC insured bank, as previously announced on November 23, 2020
As of November 30, 2020, the Company has funded $6,064,977 into 14 active lease schedules, which generate $200,000 of monthly recurring revenue and a weighted gross unleveraged IRR of 24.0%, while maintaining a conservative 57.6% portfolio lease-to-value
Total gross receivables from active leases of $7,568,920, as of November 30, 2020
David Kivitz, CEO of XS Financial commented: "Our third-quarter results were highlighted by strong revenue growth and a swing to positive adjusted EBITDA. We made significant progress on several fronts, including signing 4 new leases during the quarter, which brings our total deployed capital to $6.1MM. We are also recognizing benefits from several previously announced cost optimization efforts, some of which commenced partway through the third quarter, and are expected to continue into Q4/20 and 2021.
Building on this momentum, we also entered into two new leases post-quarter end with leading cannabis operators in their respective markets. Additionally, the company secured a revolving credit facility with favorable pricing and terms from an FDIC insured bank, which strengthens our ability to fund additional equipment leases, with new and existing customers."
Summary Financial Results
For the three months ended
For the nine months ended
September 30
September 30
2020
2019
2020
2019
Revenue
$3,858,329
$663,468
$5,451,489
$1,635,493
Cost of sales
$3,782,276
$718,631
$5,297,665
$1,903,742
Gross profit (loss)
$76,053
$(55,163)
$153,824
$(268,249)
Operating expenses
$364,034
$625,509
$1,652,669
$3,096,867
Other expense (income)
$531,945
$(2,486,616)
$2,827,868
$1,707,121
Income tax expense
-
-
-
$975
Net (loss) income
$(819,926)
$1,805,944
$(4,326,713)
$(5,073,212)
Adjusted net (loss) income
$(266,509)
$(1,058,210)
$(1,127,555)
$(3,004,156)
(Loss) income per share - basic
$(0.02)
$0.05
$(0.08)
$(0.15)
Adjusted net (loss) per share - basic
nil
$(0.03)
$(0.02)
$(0.09)
Weighted average shares outstanding - basic
54,589,706
36,295,096
52,563,488
33,974,504
Results of Operations
Revenue for Q3/20 was $3,858,329 compared to $663,468 in Q3/19. This increase of $3,194,861 was primarily attributable to the recognition of approximately $3,060,000 of revenue associated with nine new financing leases between five customers entered into in 2020, and an increase of approximately $223,000 of equipment sales in 2020 compared to 2019. The increases above are partially offset by an approximate $111,000 decrease in revenue recognized from royalty sales and operating leases from 2019 to 2020.
Cost of sales for Q3/20 was $3,782,276 compared to $718,361 in Q3/19. This increase was attributable to an increase of approximately $2,814,000 of equipment costs associated with financing leases entered into in Q3/20, and an increase of approximately $480,000 from the write-off of servicing equipment associated with non-essential equipment sales in the quarter. The increases above are partially offset by decreases totaling $202,000 related to reduced (i) servicing equipment purchases, (ii) depreciation and amortization expense and (iii) compensation and related expenses for personnel providing services to customers.
Gross profit for Q3/20 was $76,053 compared to a loss of $55,163 in Q3/19. The Company anticipates further gross margin improvement due to the curtailment of excess equipment sales and new leasing activity.
Operating expenses for Q3/20 were $364,034, down from $625,509 in Q3/19. The decrease of $261,475 was largely attributable to a decrease in professional fees of approximately $171,000 related to legal, audit, tax, and internal accounting costs, including costs associated with preparing for the reverse acquisition, subsequent receipts debenture financing, and the Company to be publicly traded.
The Company realized a net loss of $819,926 for Q3/20 compared to net income of $1,805,944 for Q3/19. The negative variance of $2,625,870 was primarily attributable to a one-time non-cash gain recognized in 2019, related to derivative liabilities and the Company's change in functional currency.
Liquidity and Capital Resources
The Company's liquidity needs are primarily to finance growth initiatives, including equipment acquisition, leasing activities, debt services, and for general corporate purposes.
At the end of Q3/20, the Company had working capital of $348,839 (compared to working capital of $1,802,038 at the end of Q3/19), including cash of $717,012 (compared to $2,487,293 at the end of Q3/19) and marketable securities ($843,071). The decrease in working capital was primarily attributable to the purchase of servicing equipment and an increase in trade payables and accrued equipment purchases related to new financing leases, and the ongoing funding of operations. These decreases are partially offset by the value of shares received in KushCo, which is recognized as an investment.
The Company's liquidity was significantly boosted post-quarter end through the collection of lease receivables, and the receipt of a new $2 million senior secured revolving credit facility with an FDIC insured bank.
The Company's unaudited interim condensed Financial Statements ("FS") and Management Discussion & Analysis ("MDA") will be filed under the Company's profile on www.sedar.com, and will also be available on XS Financial's corporate website at www.xsfinancial.com.
About XS Financial
Founded in 2017, XSF specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies. In addition, XSF provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers which results in recurring revenues, strong profit margins, and a proven business model for XSF stakeholders. The Company's common shares are traded on the Canadian Securities Exchange under the symbol "XSF" and in the United States on the OTCQB under the symbol " XSHLF." For more information, visit: www.xsfinancial.com.
For inquiries please contact:
XS Financial Inc.
David Kivitz
Chief Executive Officer
Antony Radbod
Chief Operating Officer
310.683.2336
ir@xsfinancial.com
Forward-Looking Information
This press release contains "forward-looking information" and may also contain statements that may constitute "forward-looking statements", collectively "forward-looking information", within the meaning of applicable Canadian securities legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent the beliefs and expectations regarding future events about the business and the industry and markets in which XS Financial operates, as well as plans or objectives of management, many of which, by their nature, are inherently uncertain. Generally, such forward-looking information can be identified by the use of terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information contained herein may include but is not limited to, any additional leasing opportunities and the ability to capitalize on such and the timing thereof. Forward-looking information is not a guarantee of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. XS Financial Inc., does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
[1] Adjusted EBITDA and Adjusted Net Loss are non-IFRS financial performance measure with no standardized meaning under IFRS. Adjusted Net Loss is calculated as Net Loss per IFRS adjusted for marked-to-market adjustments in the Company's investments, non-cash accretion expense, gains/losses associated with non-recurring equipment sales, non-cash equity incentives, depreciation and unrealized foreign exchange gains/losses
SOURCE: XS Financial Inc.
View source version on accesswire.com:
https://www.accesswire.com/618723/XS-Financial-Reports-Third-Quarter-2020-Financial-Results
https://finance.yahoo.com/news/xs-financial-reports-third-quarter-130000397.html
Alwaysbmikki
3 years ago
XS Financial Obtains Revolving Credit Facility to Support Continued Growth of Its Leasing Portfolio
Mon, November 23, 2020, 7:00 AM CST·4 min read
LOS ANGELES, CA / ACCESSWIRE / November 23, 2020 / XS Financial Inc. ("XS Financial", "XSF" or the "Company") (CSE:XSF)(OTCQB:XSHLF), a specialty finance company providing equipment leasing solutions to cannabis and hemp companies in the United States, announced today that it has successfully closed a US$2 million senior secured revolving credit facility, with an FDIC insured bank, which has a term of two (2) years, expiring in November 2022. Loans made under the revolving facility will bear interest at an annual rate equal to the greater of i) eight percent (8.0%) per annum or ii) the Wall Street Journal Prime plus four percent (4.0%) and may be prepaid with no penalty at any time.
The loans under the credit agreement contain customary financial covenants for transactions of this type, including limitations with respect to indebtedness, liens, and disposition of assets.
XS Financial intends to use such loan proceeds, together with cash on hand, to fund additional equipment leases with new and existing customers. https://finance.yahoo.com/news/xs-financial-obtains-revolving-credit-130000409.html
- ADVERTISEMENT -
Antony Radbod, COO of XS Financial, commented: "This credit facility provides XS Financial with greater financial flexibility and better positions us for long-term success. We believe our ability to secure this revolving facility with favorable pricing and terms speaks to both the credibility of XS Financial, the shifting sentiment toward the industry we serve, and the growing number of high-quality customers we finance, including large publicly traded multi-state operators. We are excited to close our first credit facility with an FDIC insured bank and anticipate gaining access to additional credit lines as we scale our leasing portfolio".
About XS Financial
Founded in 2017, XSF specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers and testing laboratories. In addition, XSF provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers which results in recurring revenues, strong profit margins, and a proven business model for XSF stakeholders. The Company's common shares are traded on the Canadian Securities Exchange under the symbol "XSF" and in the United States on the OTCQB under the symbol " XSHLF." For more information, visit: www.xsfinancial.com.
For inquiries please contact:
XS Financial Inc.
David Kivitz
Chief Executive Officer
Antony Radbod
Chief Operating Officer
310.683.2336
ir@xsfinancial.com
Forward-Looking Information
This press release contains "forward-looking information" and may also contain statements that may constitute "forward-looking statements", collectively "forward-looking information", within the meaning of applicable Canadian securities legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent the beliefs and expectations regarding future events about the business and the industry and markets in which XS Financial operates, as well as plans or objectives of management, many of which, by their nature, are inherently uncertain. Generally, such forward-looking information can be identified by the use of terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information contained herein may include but is not limited to, any additional leasing opportunities and the ability to capitalize on such and the timing thereof. Forward-looking information is not a guarantee of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. XS Financial Inc., does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: XS Financial
Alwaysbmikki
4 years ago
XS Financial Provides $5 Million Equipment Lease Facility to Support Large Multi-State Cannabis Operator's Expansion
https://finance.yahoo.com/news/xs-financial-provides-5-million-130000572.html
Mon, November 2, 2020, 7:00 AM CST
LOS ANGELES, CA / ACCESSWIRE / November 2, 2020 / XS Financial Inc. ("XS Financial", "XSF" or the "Company") (CSE:XSF) (OTCQB:XSHLF), a specialty finance company providing scalable equipment leasing solutions to cannabis and hemp companies in the United States, announced today that it has entered into a lease agreement with a large scale, vertically integrated multi-state operator. All amounts are in U.S. dollars.
The customer has been approved for an equipment lease facility of up to $5.0 million, which can be drawn upon in multiple tranches as needed, with 48-month terms.
David Kivitz, CEO of XS Financial commented: "We are providing equipment financing that will help support the growth of a large, publicly-traded multi-state operator focused on some of the most attractive cannabis markets in the United States. The customer has already drawn on three different lease schedules for an aggregate of $419,000, with financed equipment being deployed in Nevada and Massachusetts. While we are not able to name the customer at this time due to confidentiality reasons, they are a great fit for us strategically and we see strong potential for repeat business."
About XS Financial
Founded in 2017, XSF specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers and testing laboratories. In addition, XSF provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers which results in recurring revenues, strong profit margins, and a proven business model for XSF stakeholders. The Company's common shares are traded on the Canadian Securities Exchange under the symbol "XSF" and in the United States on the OTCQB under the symbol " XSHLF." For more information, visit: www.xsfinancial.com.
For inquiries please contact:
XS Financial
David Kivitz
Chief Executive Officer
Antony Radbod
Chief Operating Officer
310.683.2336
ir@xsfinancial.com
Forward-Looking Information
This press release contains "forward-looking information" and may also contain statements that may constitute "forward-looking statements", collectively "forward-looking information", within the meaning of applicable Canadian securities legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent the beliefs and expectations regarding future events about the business and the industry and markets in which XS Financial operates, as well as plans or objectives of management, many of which, by their nature, are inherently uncertain. Generally, such forward-looking information can be identified by the use of terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information contained herein may include but is not limited to, any additional leasing opportunities and the ability to capitalize on such and the timing thereof. Forward-looking information is not a guarantee of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. XS Financial Inc., does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: XS Financial
View source version on accesswire.com:
https://www.accesswire.com/613676/XS-Financial-Provides-5-Million-Equipment-Lease-Facility-to-Support-Large-Multi-State-Cannabis-Operators-Expansion
Alwaysbmikki
4 years ago
XS Financial Provides $5 Million Equipment Lease Facility to Skymint Brands
ACCESSWIRE ACCESSWIRE•October 13, 2020
LOS ANGELES, CA / ACCESSWIRE / October 13, 2020 / XS Financial Inc. ("XS Financial", "XSF" or the "Company") (CSE:XSF) (OTCQB:XSHLF), a specialty finance company providing scalable equipment leasing solutions to cannabis and hemp companies in the United States, announced today that it has entered into a lease agreement with Skymint Brands (formerly known as Green Peak Innovations), Michigan's leading vertically integrated cannabis operator and the largest holder of recreational use and medical cannabis licenses in the State. All amounts are in U.S. dollars.
Skymint Brands has been approved for an equipment lease facility of up to $5.0 million for new equipment, to be deployed in multiple tranches on a pro-rata basis and based on 48-month terms. Skymint Brands has already begun to draw down on the lease facility to assist with its strong growth in Michigan.
David Kivitz, CEO of XS Financial commented: "Our financing will enable Michigan's leading vertically integrated recreational and medical cannabis company to obtain mission-critical equipment. This transaction exemplifies our strategic focus, which is to collaborate with premier cannabis and hemp operators and support their growth, resulting in larger leasing agreements and the potential for repeat business. We believe this is just the start of a long term, mutually beneficial relationship with Skymint Brands, and we look forward to growing alongside them as they continue to scale and capture market share."
Al Gever, President of Skymint Brands commented: "On the heels of strong performance in our first full year of operations, we are thrilled to have identified a strategic partner with extensive experience and deep expertise as a cannabis equipment financier. XS Financial will play a critical role in financing our growth capital as we significantly scale our operations heading into 2021 and extend our leadership position in Michigan."
About XS Financial
Founded in 2017, XSF specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers and testing laboratories. In addition, XSF provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers which results in recurring revenues, strong profit margins, and a proven business model for XSF stakeholders. The Company's common shares are traded on the Canadian Securities Exchange under the symbol "XSF" and in the United States on the OTCQB under the symbol " XSHLF." For more information, visit: www.xsfinancial.com.
About SKYMINT BRANDS™
Beginning operations in Fall 2018, Skymint (formerly known as Green Peak Innovations) is Michigan's leading vertically integrated cannabis company and the state's largest medical and recreational license holder. With two state-of-the-art indoor grow facilities, the company cultivates, processes, markets, distributes and sells a full range of branded cannabis products, including SKYMINT™, North Cannabis™, Jolly Edibles™, the Two Joints™ brand, which benefits the Last Prisoner Project, and SKYMINT X DNA GENETICS.™ Just as SKYMINT treats its plants like people - tending to and caring for them by hand, and even playing them music - each and every product is handcrafted to ensure the safest, cleanest, highest quality products at the best value. SKYMINT™ products can be found at the company's SKYMINT™ provisioning centers and via retailers around Michigan through a robust wholesale network. As purveyors
of premium-crafted cannabis, SKYMINT™ has developed a portfolio of the finest cannabis brands available for daily wellness, healing, or just getting high on life. SKYMINT™ inspires people everywhere to feel better, live better and do better. Learn more: www.skymint.com/dna-x-skymint/
For inquiries please contact:
XS Financial
David Kivitz
Chief Executive Officer
Antony Radbod
Chief Operating Officer
310.683.2336
ir@xsfinancial.com
Skymint Brandshttps://finance.yahoo.com/news/xs-financial-provides-5-million-120000435.html
Alwaysbmikki
4 years ago
S Financial Reports Second Quarter 2020 Financial Results
LOS ANGELES, CA, August, 31, 2020 – XS Financial Inc., (“XS Financial”, "XSF" or the "Company") (CSE: XSF) (OTCQB: XSHLF) a specialty finance company engaged in equipment leasing to owner-operators of cannabis and hemp companies in the United States, announced today results for the quarter ending June 30, 2020 (“Q2/20”) and for the six-month period ending June 30, 2020 (“H1/20”). The Company’s unaudited interim condensed Financial Statements (“FS”) and Management Discussion & Analysis (“MDA”) are available under the Company’s profile on www.sedar.com, and on the corporate website at www.xsfinancial.com. All figures are expressed in United States dollars ($) unless otherwise stated.
David Kivitz, Chief Executive Officer of XS commented, “We are very pleased with the progress we are making and continue to see improvements quarter over quarter. With the recent announcement outlining cost optimizations, which include management agreeing to a reduction in cash compensation, savings from a reduction of the interest rate on the term loan, the restructuring of certain staff and the closure of the Florida facility, the Company expects to realize annualized savings of over US$500,000, or almost 50% of the prior operating budget. The Company believes that the streamlining of costs and the current portfolio of revenue-generating leases will improve bottom-line results within the third quarter of this year.
Q2/20 and H1/20 Highlights:
Revenues of $1,293,115 for Q2/20, compared to $430,708 for the same period of the previous year (“Q2/19”), and revenue of $1,593,160 for H1/20 compared to $972,025 for the period ending June 30, 2019 (“H1/19”)
Gross Profit of $8 for Q2/20 compared to a gross loss of $120,336 for Q2/19, and gross profit of $77,771 for H1/20 compared to a gross loss of ($213,086) for H1/19
Operating Expenses of $783,929 for Q2/20 compared to $1,534,667 for Q2/19, and operating expenses of $1,210,864 for H1/20 compared to 2,684,444 for H1/19
Net Cash Used in Operating Activities of $(370,241) for compared to $(1,172,361) for Q2/19, and net cash used in operating activities of ($370,241) for H1/20 compared to ($1,172,361)
Net Loss of $899,688 compared to a loss of $1,736,415 for Q2/19.
Adjusted Net Lossi of $848,075 for Q2/20 compared to a loss of $1,765,556 in Q2/19
Cash on hand at Q2/20 of $2,297,505 (working capital of $1,794,807).
Adjusted Net Loss/ Adjusted Gross Profit are non-IFRS financial performance measures with no standard definition under IFRS. Adjusted Net Loss or Adjusted Gross Profit is calculated as Net Loss or Gross Profit per IFRS adjusted for the non-cash unrealized loss in the change in the fair value of investments, non-cash change in fair value of derivative liabilities, non-cash gains/losses on non-recurring equipment sales and non-cash accretion expense.
Recent Corporate Highlights:
Two New Leasing Agreements with Carolina Botanical LLC (“CBD LLC”): CBD LLC, an existing customer with two existing lease agreements, entered into two new short-term leases for $66,000 with a 120-day term and $50,000 with a 90-day term. The equipment was sourced through XSF’s Preferred Vendors and ranged from solvent recovery to remediation systems.
Name Change to XS Financial: The new name better reflects the Company’s business model, and as a result the Company was also reclassified on the Canadian Securities Exchange, to “Diversified Industries,” a designation that includes businesses such as consumer products & services, real estate, communications & media and financial services, to name a few.
Third Drawdown with PharmaCann Inc. (“PharmaCann”): PharmaCann was approved for an equipment lease of up to USD$3.4 million for new equipment purchases to be deployed in tranches on a pro-rata basis and based on 48-month terms. The most recent drawdown brought the total drawn as of July 9, 2020, to approximately USD$2.8 million for new equipment to expand their manufacturing capabilities in multiple markets, including Ohio, Illinois, Massachusetts, Pennsylvania, and New York. Over 90 pieces of various equipment were sourced from 36 vendors who are part of the Company’s Preferred Vendor Program.
Completion of California Lenders License (‘CFL”) Acquisition: The Company successfully closed the acquisition of a CFL through the purchase of a local entity in California as previously announced (see press release dated January 27, 2020). The acquisition of the lender license allows XSF to significantly expand its lending and financing capabilities in California.
Addition of Two Seasoned Professionals to the Underwriting and Client Services Team: Announced the addition of Jim Bates as Director of Risk and Kenneth Senter as Director of Client Services. Both have extensive experience and knowledge of the finance and leasing world with a combined tenure of over 60 years.
Streamlining of Costs to Ensure Profitability: Provided a corporate update highlighting some recent cost optimizations which will serve to improve bottom-line performance and profitability. With the current portfolio of revenue-generating leases and the Company’s ongoing access to capital through Archytas Ventures LLC (“Archytas”) and KushCo Holdings Inc. (“KushCo”) stock, XSF remains well capitalized to continue to grow its leasing portfolio.
Key Financial Results
Results of Operations
The Company has established key customer relationships, some of which became revenue-generating in 2019, with the remainder of its established customers generating revenue in 2020. Revenues of $1,293,115 for Q2/20, increased by $862,407 when compared to revenue of $430,708 for Q2/19. The increase in revenue was attributable to the recognition of approximately $1,150,000 of revenue associated with three new financing leases between two customers entered into in 2020. The above increase is partially offset by approximately a $297,000 decrease in revenue recognized from equipment sales, royalty sales, and operating leases from 2019 to 2020.
For H1/20, revenues increased by $621,135 to $1,593,160 compared to revenue of $972,025 for H1/19, which was attributable to the recognition of approximately $1,307,000 of revenue associated with three new financing leases between two customers entered into in 2020. The above increase is partially offset by approximately a $695,000 decrease in revenue recognized from equipment sales, royalty sales, and operating leases from 2019 to 2020.
Cost of sales for Q2/20 were $1,293,107 compared with $551,074 for Q2/19. The increase of $742,033 in Q2/20 compared to Q2/19 was primarily attributable to approximately $1,023,000 of equipment costs associated with financing leases entered into within the first six months of 2020, partially offset by decreases in (i) equipment purchases made in 2019 related to the direct sale of equipment to a customer, (ii) depreciation and amortization expense, and (iii) and compensation and related expenses for personnel providing services to customers.
Cost of sales for H1/20 increased by $330,278 to $1,515,389 compared with $1,185,111 for H1/19, which was attributable to approximately $1,150,000 of equipment costs associated with financing leases entered into in the first six months of 2020 partially offset by decreases as described above.
The Company realized a gross profit of $8 for Q2/20, compared to a gross loss of $120,306 for Q2/19, and adjusted gross profit (adjusted by removing the sale of legacy equipment) for Q2/20 of $59,008. For H1/20 the Company realized a gross profit of $77,771 compared to a loss of $213,086 for H1/19 and adjusted gross profit of $137,000 for H1/20. The Company anticipates further gross margin improvements due to the curtailment of excess equipment sales and new leasing activity.
Operating expenses of $783,937 for Q2/20 decreased by $630,364 when compared to operating expenses of $1,414,301 for Q2/19, mainly due to a decrease in professional fees of approximately $370,000 related to legal, audit, tax and internal accounting costs incurred in 2019, including costs associated with preparing for the reverse acquisition, subsequent receipts debenture financing and the Company to be publicly traded. The Company also incurred approximately $743,000 of non-cash professional fees related to the issuance of stock and warrants to advisors and brokers during the three months ended June 30, 2019. To a lesser degree, the decrease is attributable to a reduction in the use of third-party contractors and employees, and a reduction in the 2020 second quarter management fee charged from a related party for day-to-day executive management and support to the Company. The above decreases are partially offset by an increase of approximately $281,000 in non-cash incentive compensation primarily related to the issuance of options in April 2020 that were fully vested and expensed upon issuance. Operating expenses for H1/20 of $1,288,635 decreased from $2,471,358 for H2/20 for the reasons as discussed above.
Net cash used in operating activities for the six months ending June 30, 2020 (“H1/20”) was $370,242.
Cash Flow Per Share and Earnings Per Share (“EPS”)
Comparative table illustrating changes in CFPS and EPS for the period ending March 30, 2019 (“Q1/19), Q2/19, the period ending September 30, 2019 (“Q3/19”), the period ending December 31, 2019 (“Q4/19”), the period ending March 30, 2020 (‘Q1/20”), and Q2/20.
Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20
Cash Flow Per Share $ (0.03) $ (0.03) $ (0.02) $ (0.01) $ (0.01) $ (0.01)
Earnings Per Share $ (0.16) $ (0.05) $ (0.01) $ 0.04 $ (0.05) $ (0.02)
The Company realized a loss of $899,688 for Q2/20 (a loss of $3,506,787 for H1/20) compared to a loss of $1,736,415 for Q2/19 (loss of $6,879,156 for H1/19). The Company anticipates further improvement in losses throughout 2020 due to the curtailment of excess equipment sales, significant cost reduction initiatives, the absence of costs related to the reverse acquisition and new leasing activity.
After adjusting for non-cash items including unrealized loss in fair value change of investments, change in fair value of derivative liabilities, non-cash gains/losses on non-recurring equipment sales and & accretion expense, the Company reported an adjusted net loss of $$848,075 compared to a loss of $1,765,556 in Q2/19. The Company anticipates further improvements throughout 2020 due to new leasing activity, the curtailment of excess equipment sales, significant cost reduction initiatives, and the absence of one-time costs related to the reverse takeover transaction.
Liquidity and Capital Resources
The Company’s liquidity needs are primarily to finance growth initiatives, including equipment acquisition, leasing activities, debt services, and for general corporate purposes.
At Q2/20, the Company had working capital of $1,794,807 (compared to working capital of $1,802,032 at Q2/19), including cash of $2,297,505 (compared to $2,487,293 at Q2/19). The decrease in working capital by $(7,231) was primarily attributable to the deferred revenue for deposits received on financing leases and the funding of operations partially offset by shares received in KushCo recognized as an investment. The increase in accumulated deficit $(3,506,787) was primarily attributable to the funding of operations and non-cash charges related to the unrealized loss on the fair value change of the KushCo investment, amortization of debt issuance costs and discounts and non-cash compensation.
Additional information and disclosure relating to the Company’s financial position for Q2/20, is available within the FS and MDA, both of which are available under the Company’s profile at www.sedar.com.
Outlook
XS Financial recently changed its name to better reflect the business model where the Company continues to assess numerous leasing opportunities and intends to pursue those that align with its growth objectives in the United States. Target leasing opportunities will mainly consist of leases to businesses underpinned by recurring, predictable revenues, sound balance sheets and experienced management teams.
Current Pipeline:
Currently have multiple signed term sheets and maintain a robust pipeline with approximately 25 leasing opportunities under review
Increase in leasing demand from Original Equipment Manufacturers’ (OEM) as customers are requesting financing options
Increase in leasing opportunities to higher-quality, larger companies
The Company continues to offer its customers low-cost, capital-efficient non-dilutive financing and leasing solutions. XS Financial has become a recognized provider in the industry, as evidenced by an increase in the quality and number of leads available. The Company remains committed to establishing strong customer relationships with leading operators and OEMs, which will provide better returns for shareholders and stakeholders alike.
Business Model and Revenue Streams
XS Financial currently provides equipment leasing solutions and purchasing solutions for cannabis and hemp operators in the United States. The Company works directly with equipment vendors across the supply chain to offer a point of sale leasing solutions for end-use customers.
Equipment Sales & Procurement: XS Financials’ team is experienced in identifying and sourcing the right equipment to meet the distinctive needs of each customer. Through the Preferred Vendor Program, the Company has access to an expansive variety of equipment, enabling XS Financial to source the right equipment from the right vendor with attractive payment options.
Equipment Leasing Solutions: Equipment leasing solutions offer customers the ability to defer significant up-front capital across manageable monthly payments with flexible terms and affordable down payments. Term lengths generally range from 24-48 months and are considered on an individual basis.
Sale-Leaseback Solutions: The sale-leaseback offering allows customers the opportunity to leverage existing equipment to unlock working capital for general operating expenses, expansion equipment, and growth initiatives without any disruption to existing operations. The sale-leaseback allows XS Financial to diversify and scale its portfolio of customers while also allowing OEM partners to leverage their existing client base.
Customer Support: XS Financial provides a customer-focused experience and underwriting process. Whether it is working with our customers’ finance team to identify the appropriate lease structure for state tax implications, to working with the procurement team to identify equipment from our Preferred Vendors, XS is focused on the customer first. The organization provides quality support and full transparency throughout the entire leasing process. With a multifaceted understanding of the industry, its suppliers, and the regulatory environment, XS can structure a custom lease solution tailored to specific needs.
https://mailchi.mp/f89787365d14/2019-year-end-corporate-update-8212210?e=a68865088c
Alwaysbmikki
4 years ago
XS Financial Announces Third Tranche Drawdown With Pharmacann
LOS ANGELES, July 9, 2020 -- XS Financial Inc., (“XS Financial”, "XS" or the "Company") (CSE:XSF) (OTCQB: XSHLF), a specialty finance company engaged in equipment leasing in the United States, announced today that PharmaCann Inc. (“PharmaCann”), one of the largest privately held and vertically-integrated cannabis companies based in Chicago, Illinois, continues to draw down on their lease amount.
PharmaCann was approved for an equipment lease of up to USD$3.4 million for new equipment purchases to be deployed in tranches on a pro-rata basis and based on 48-month terms. This drawdown brings the total drawn to date to approximately USD$2.8 million for new equipment, which allows PharmaCann to expand its manufacturing capabilities in multiple markets, including Ohio, Illinois, Massachusetts, Pennsylvania and New York. Over 90 pieces of various equipment was sourced from 36 vendors who are part of the Company’s Preferred Vendor Program.
Brett Novey, Chief Executive Officer of PharmaCann commented, “It’s a pleasure working with XS. Their internal procurement team provides valuable support in addition to the capital provided, and XS continues to be a great partner. This equipment allows PharmaCann to expand our production capabilities in high-growth, limited-license jurisdictions in a more capital-efficient manner.”
David Kivitz, Chief Executive Officer of XS commented, “As our customers grow, XS will be there to support their needs and provide tailored and flexible equipment leasing solutions to mitigate large capital outlays, or excessive dilution. PharmaCann is one of the largest vertically-integrated cannabis companies in the United States, and we are very pleased to work with them.”
About XS Financial
Founded in 2017, XS specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers, testing laboratories, among others. In addition, XS provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers, which results in recurring revenues, strong profit margins, and a proven business model for XS stakeholders.
For more information please contact XS Financial:
David Kivitz
Chief Executive Officer Antony Radbod
Director, SVP of Sales and Marketing
Tel: 1-310-683-2336
Email: ir@xsfinancial.com
www.xsfinancial.com
Forward-Looking Information
This press release contains "forward-looking information" and may also contain statements that may constitute "forward-looking statements", collectively “forward-looking information”, within the meaning of applicable Canadian securities legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent the beliefs and expectations regarding future events about the business and the industry and markets in which XS Financial operates, as well as plans or objectives of management, many of which, by their nature, are inherently uncertain. Generally, such forward-looking information can be identified by the use of terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information contained herein may include but is not limited to, any additional leasing opportunities and the ability to capitalize on such and the timing thereof.
Forward-looking information is not a guarantee of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. XS Financial does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
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https://mailchi.mp/807255a18eb6/2019-year-end-corporate-update-7992234?e=a68865088c
Alwaysbmikki
4 years ago
XS Financial Highlights Precision Extraction Solutions, an OEM Partner Within the Preferred Vendor Program
XS Financial Inc. ("XS Financial", "XS" or the "Company") (CSE: XSF) (OTCQB: XSHLF) a specialty finance company engaged in equipment leasing in the United States, is pleased to provide an update on original equipment manufacturers ("OEM"), within its Preferred Vendor Program.
Nic Shafer, VP of Marketing at Precision Extraction Solutions commented, "As cannabis legalization continues to sweep the nation, we have found a lot of our customers are scaling up their operations. With over 70% of our clients seeking financing options for their extraction facilities, we are excited to partner with XS Financial to help our clients get the financing they need to get their operations up and running quickly."
OEM Highlights:
Precision Extraction Solutions ("Precision Extraction") is committed to evolve the science of extraction equipment and technology by developing the most desired and sought-after extraction equipment, technology, and specialty equipment on the market. There is no such thing as a truly "turnkey" one-size fits all solution for cannabis processing. Each laboratory has its own unique limitations and even geographical implications that must be properly considered. The key principal that sets Precision Extraction apart from competitors is the ability to appropriately identify these key design parameters and effectively design the correct end-to-end solution to meet the individual customer needs.
Utilize design, engineering, and manufacturing expertise to ensure that all products are safe, high-quality, reliable and refined.
Committed to provide customers with the highest quality extraction equipment, technology, customer service, and tech support so that their business can thrive in the fast-paced cannabis industry.
The number one provider of extraction equipment and technology – Precision Extraction’s goal is to help customers thrive in the extraction industry, hence why more award-winning concentrates are made with Precision® than any other brand!
To learn more about Precision Extraction, please visit their website at www.precisionextraction.com
Preferred Vendor Program
XS established its Preferred Vendor program to partner directly with the OEMs. The Company’s in-house technical team assesses the OEMs service agreements, type, and duration of warranty coverage, and ensures that frequently replaced parts are readily available. This allows XS to get comfortable with the manufacturers serving the industry and how they operate, which in turn, mitigates technology risk. Additionally, these programs create a robust sales channel that supports the core business, while allowing OEM’s to offer turn-key leasing solutions for their end-use customers. XS currently has over 95+ Preferred Vendors within its program.
As access to capital has remained challenging and limited, cannabis and hemp companies seek flexibility in acquiring the necessary capital to achieve their growth initiatives. These partnerships allow XS to offer tailor-made solutions to its customers, while providing OEM partners with seamless, leasing solutions for their customers at the point of sale.
About XS Financial
Founded in 2017, XS specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers, testing laboratories, among others. In addition, XS provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers, which results in recurring revenues, strong profit margins, and a proven business model for XS stakeholders.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200707005283/en/
Contacts
Visit www.xsfinancial.com for more information or contact XS Financial at:
David Kivitz
Chief Executive Officer
Antony Radbod
SVP, Sales and Marketing
Tel: 1-407-900-4737 Ext. 5
Email: ir@xsfinancial.com
https://finance.yahoo.com/news/xs-financial-highlights-precision-extraction-115500003.html
Alwaysbmikki
4 years ago
Xtraction Services Enters Into Leasing Agreement With PharmaCann, One of the Largest Privately Held and Vertically-Integrated Cannabis Companies in the United States
Business Wire Business WireMay 12, 2020
Xtraction Services Enters Into Leasing Agreement With PharmaCann, One of the Largest Privately Held and Vertically-Integrated Cannabis Companies in the United States
Business Wire Business WireMay 12, 2020
Xtraction Services Enters Into Leasing Agreement With PharmaCann, One of the Largest Privately Held and Vertically-Integrated Cannabis Companies in the United States
Xtraction Services Holding Corp., ("Xtraction Services", "XS" or the "Company") (CSE:XS) (OTCQB: XSHLF), a specialty finance company engaged in equipment leasing in the United States, announced today entering into a Lease Agreement (the "Agreement’), with PharmaCann Inc. ("PharmaCann"), one of the largest privately held and vertically-integrated cannabis companies operating cultivation, manufacturing, distribution and retail locations in six states, based in Chicago, Illinois.
PharmaCann has been approved for an equipment lease of up to USD$3.4 million for new equipment purchases to be deployed in tranches on a pro-rata basis and based on 48-month terms. Tranche 1 totals USD$0.87 million of new equipment, which allows PharmaCann to expand their manufacturing capabilities in multiple markets, including Ohio, Illinois, Massachusetts and Pennsylvania. XS utilized its Preferred Vendors to ensure a seamless procurement process with the PharmaCann team and the opportunity allowed XS to add multiple new Original Equipment Manufacturers to the program.
Highlights:
PharmaCann is one of the largest vertically-integrated cannabis companies, currently licensed in six (6) states to grow, process and/or dispense high-quality cannabis products in both medical and recreational markets
48-month term from draw-down date of each tranche
Total lease amount approved for up to USD$3.4 million with Tranche 1 drawn immediately for USD$0.87 million of new equipment
David Kivitz, Chief Executive Officer of XS, commented, "PharmaCann is one of the largest vertically-integrated cannabis companies in the United States, committed to providing safe, reliable, top quality cannabis to improve people’s lives. They represent the quality of customer XS is looking to work with and we are proud to be an integral part of their growth. PharmaCann, a major multi-state-operator, is one of the largest leases XS has signed to date and we are aggressively working to add new customers through our current pipeline of +32 advanced discussions with potential new customers. We are excited with the trajectory the Company is taking and look forward to providing additional updates as they become available."
Brett Novey, Chief Executive Officer of PharmaCann, commented, "It was a pleasure working with XS. Their team was a great partner from start to finish, and always had our best interest in mind. This equipment lease allows PharmaCann to expand our production capabilities in high-growth, limited-license jurisdictions in a more capital-efficient manner."
In connection with the transaction, XS has agreed to issue an aggregate of 600,000 common shares of the Company as an advisory fee to an arm’s-length consultant, subject to the approval of the Canadian Securities Exchange.
About Xtraction Services
Founded in 2017, XS specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers, testing laboratories, among others. In addition, XS provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers, which results in recurring revenues, strong profit margins, and a proven business model for XS stakeholders.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
https://finance.yahoo.com/news/xtraction-services-enters-leasing-agreement-115500756.html
Alwaysbmikki
4 years ago
Xtraction Services Reports Financial Results for the Year Ended 2019
Business WireApril 29, 2020
https://finance.yahoo.com/news/xtraction-services-reports-financial-results-115500276.html
CSE: XS) (OTCQB: XSHLF) a specialty finance company engaged in equipment leasing in the United States, announced today results for the year ending December 31, 2019 ("YE/19"). The Company’s audited year-end condensed Financial Statements ("FS") and Management Discussion & Analysis ("MDA") are available under the Company’s profile on www.sedar.com, and on the corporate website at www.xtractnow.com. All figures are expressed in United States dollars ($) unless otherwise stated.
David Kivitz, Chief Executive Officer of XS commented, "2019 was a work in progress as we streamlined costs and focused on cleaning up the balance sheet. We successfully transacted on a trade of non-essential equipment to acquire 13.4% of our outstanding shares, which also reduced operating expenses. Our team built out our equipment vendor partnerships and strengthened our customer pipeline. The completion of the reverse take-over of Caracara in September provided additional capital, which was deployed into several new leasing opportunities. Our efforts did not go unnoticed as we were able to forge a strategic partnership with KushCo, allowing both companies to continue their respective growth initiatives, while utilizing each of our strengths to support one another. As well, with KushCo taking a 19.9% ownership stake in the Company, our strategic partners along with insiders now control over 40% of the Company.
"There are very few specialty finance companies that provide equipment financing to cannabis and hemp companies, and fewer that do it well. This is not an easy industry to underwrite, given the varying regulations and technical knowledge that is required. With the accomplishments achieved over the past year, we are now in a strong position, poised for growth. XS has increased its share of larger, better established companies in its pipeline and we are excited with the prospects for the Company in 2020 and beyond."
YE/19 Financial Highlights:
Increased Revenues to $2.3 million at YE/19, compared to $0.15 million for the same period of the previous year ("YE/18").
Gross Loss Improved to $0.33 million compared to a gross loss of $1.0 million at YE/18.
Operating Expenses of $4.2 million compared to $3.6 million at YE/18.
Realized Loss of $6.9 million compared to a loss of $5.9 million at YE/18.
Cash on hand at YE/19 of $2.5 million (working capital of $1.8 million).
2019 Corporate Highlights:
Commenced Trading on the Canadian Securities Exchange ("CSE"): Successfully completed the reverse takeover transaction with Caracara Silver Inc., in September 2019, to list on the CSE under the symbol "XS".
New Vendors added to the Preferred Vendor Program: Continued to add new partners to the rapidly growing list of Original Equipment Manufacturers ("OEM") who offer the highest quality equipment and service across the equipment value chain.
Khrysos Industries, Inc. ("Khrysos") Equipment Trade: XS returned non-essential, spare equipment inventory to Khrysos, in exchange for their 13.4% equity ownership position in XS.
Halo Labs Inc. ("Halo") Sale-Leaseback Agreement: The Company signed a sale-leaseback agreement with Halo, a publicly traded leading cannabis extraction company that develops and manufactures quality cannabis oils and concentrates operating in California, Oregon, and Nevada.
Post-Year End Highlights:
OTCQB Listing & DTC Eligibility: Commenced trading on the OTCQB Venture Market under the symbol "XSHLF" in January 2020. Received approval for the book-entry delivery and depository services of Depository Trust Company in March 2019, which offers a more convenient trading experience for current and future investors in the United States.
New Leasing Agreement with Lehua Group USA, LLC ("Lehua"): Entered into a leasing agreement with this multi-state, licensed cannabis processor specializing in THC-infused beverages.
Acquired California Lenders License: The acquisition of the lender license allows XS to significantly expand its lending and financing capabilities in the State of California.
Partnership with KushCo Holdings Inc. ("KushCo"): Entered into a strategic partnership with this premier producer of ancillary products and services to the legal cannabis and CBD industries, with KushCo taking a 19.9% ownership position in XS.
Outlook
Xtraction Services continues to assess numerous leasing opportunities and intends to focus on pursuing those that align with its growth objectives, primarily in the United States. Target leasing opportunities will mainly consist of leases to businesses underpinned by recurring, predictable revenues, sound balance sheets, and experienced management teams.
Current Pipeline:
Currently have multiple signed term sheets and maintain a robust pipeline with approximately 40 leasing opportunities under review
Increase in leasing opportunities to higher quality, larger companies, who now have fewer options for raising capital
In light of the current environment, the Company believes accretive opportunities exist as many companies throughout the United States lack sufficient access to capital or are burdened with restrictive sources of capital, leading to excessive dilution. XS has become a recognized brand in the industry as evidenced by an increase in the quality and number of leads available. The Company remains committed to establishing strong customer relationships, which will provide better returns for shareholders and stakeholders alike.
Key Financial Results
Results of Operations
The Company has established key customer relationships, some of which became revenue-generating in 2018, with the remainder of its established customers generating revenue in 2019. Revenues increased by $2.1 million for YE/19 with annual revenues of $2.3 million compared to $0.15 million for YE/18. A portion of the revenue increase was due to the recognition of the present value of non-cancelable rentals associated with financing leases entered into in 2019, as well as the completion of a direct equipment sale.
New leases entered into in 2019 resulted in an increase in the cost of sales by $1.5 million over the previous year. Cost of sales for YE/19 of $2.6 million compared to $1.1 million for YE/18 were primarily attributable to equipment costs associated with financing leases entered into in 2019, the cost of equipment purchases for a direct equipment sale, and to a lesser degree, compensation and related expenses for personnel providing services to customers, as well as increased non-cash depreciation expense related to the servicing of equipment in 2019.
The Company realized a gross loss of $0.33 million for YE/19, compared to a loss of $1.0 million for YE/18. The Company anticipates further gross margin improvements due to the curtailment of excess equipment sales and new leasing activity.
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