urban-gro, Inc., a fully integrated architectural, engineering and cultivation systems integration company focused on the indoor Controlled Environment Agriculture (“CEA”) market, today announced participation in a convertible note offering of XS Financial Inc, a specialty finance company providing CAPEX financing solutions including equipment leasing to cannabis companies in the United States. The investment strengthens the strategic alliance between urban-gro and XSF providing urban-gro clients with expanded access to short duration, non-dilutive, low-cost capital financing. urban-gro’s $2.5 million investment entails a private placement of unsecured convertible notes in the aggregate principal amount of $43.5 million, of which $33.5 million will be funded at closing and $10 million is available on a delayed draw on the same terms until June 30, 2022. urban-gro expects this investment will return significant value to shareholders not only in terms of the note and conversion itself but also with respect to creating additional revenue and margin opportunities for both companies.
Published Ncv Newswire, New Cannabis Ventures, 11/01/2021 09:53:00