Marijuana financier XS Financial signs $24 million line of credit

Women, minority execs show few gains in U.S. cannabis industry, according to the latest data from the MJBiz Diversity, Inclusion and Equity Report. Get your copy here.


Marijuana industry finance company XS Financial has taken out a $24 million line of credit.

XS Financial said in a Thursday news release that it will use the proceeds, “together with cash on hand, to fund additional (capital expenditures) and equipment leases with new and existing customers.”

XS Financial is a specialty finance company that provides capital expenditure and equipment financing to U.S. cannabis companies.

Massachusetts-based Needham Bank, which has focused on the cannabis industry, committed $20 million and will administer the line of credit.

The remaining $4 million, from an unspecified bank, will replace a previous $4 million line of credit from the same bank.

Los Angeles-based XS Financial said it also retired a previous $15 million line of credit from the Garrington Group.

The new credit facility expires in August 2024 and bears annual interest at the Wall Street Journal Prime rate plus 1%, with a 6% floor.

Loans from the credit line may be repaid at any time without penalty, according to XS Financial’s release.