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.