Urban-gro invests in cannabis equipment leasing financier

LAFAYETTE — Indoor agricultural engineering firm Urban-gro Inc. (Nasdaq: UGRO) is investing $2.5 million in an offering from XS Financial Inc. (CSE: XSF), a company that provides financing and equipment leasing services to cannabis firms. 

In total, XS is seeking to raise $43.5 million in a convertible note offering. 

The investment comes on the heels of a new partnership between the companies aimed at providing Urban-gro clients with access to capital for equipment. 

“The XSF solution is a unique offering in the marketplace that we believe will help our clients overcome one of the most significant hurdles in the cannabis industry, financing the equipment purchases for their cultivation and extraction facilities,” Urban-gro CEO Bradley Nattrass said in a prepared statement. “XSF has a dynamic leadership team, and we are already realizing strong synergies since launching our new urban-gro financial services division and signing our XSF partnership agreement last month.” 

© 2021 BizWest Media LLC

on Facebook on LinkedIn