XS Financial Inc. 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.”
Source: Biospace
