XS Financial Announces Closing of California Lenders License Acquisition
July 13 2020 - 6:00PM
Business Wire
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 it
has closed the acquisition of a California Lenders License
(‘CFL”), through the purchase of a local entity (the
“Target Company”), in California as previously announced
(see press release dated January 27, 2020). The Company has issued
today, 450,671 subordinate voting shares (“common shares”)
of XS at a price of $0.29 per share, subject to a 12-month lockup,
and made a cash payment of US$13,651 in consideration of the
acquisition of all of the issued and outstanding shares of the
Target Company.
The acquisition of the lender license allows XS to significantly
expand its lending and financing capabilities in the state of
California (“CA”). The Company expects the license to play a
crucial role given the steady increase in inbound requests from
customers with business operations in CA.
David Kivitz, Chief Executive Officer of XS, commented,
“We are thrilled to have obtained our California Lenders License.
It is estimated that California will represent as much as one in
four of all dollars spent in the U.S. on legal cannabis by 2024.
While once very fragmented, we are seeing the emergence of true
manufactures in the market and will continue to assist growth with
quality operators.”
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.
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, the anticipated inflow of leads from
the California market and the ability to sign any new leases and
the timing thereof.
Forward-looking information does not guarantee 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.
This press release does not constitute an offer to sell nor a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
“U.S. Securities Act”) or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available. Not for distribution to U.S. newswire services or for
dissemination in the United States. Any failure to comply with this
restriction may constitute a violation of U.S. securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20200713005692/en/
Visit www.xsfinancial.com for more information or contact XS
Financial at: David Kivitz, Chief Executive Officer Antony
Radbod, SVP, Sales and Marketing Tel: 1-310-683-2336 Email:
ir@xsfinancial.com