Urban-gro, Inc. UGRO entered into an agreement related to its investment in a private placement convertible note with XS Financial Inc XSF XSHLF, an equipment finance company to the US cannabis industry.
What Happened
Both companies mutually agreed that XSF would retire Urban Goro’s convertible note for $2.3 million, a 10% discount to the company’s current book value of the investment.
The $2.3 million cash payment received is in addition to the $0.3 million of interest earned and received since making the original $2.5 million investment in the fourth quarter of 2021.
“We believe XS Financial is a great company working to support the cannabis industry by helping clients finance their capital expenditures and we look forward to continuing our strategic relationship,” Bradley Nattrass, the company’s chairman and CEO said.
Nattrass will undoubtedly share some valuable insights on the challenges cannabis businesses face at the upcoming Benzinga event in Chicago, where he is a speaker alongside other top CEOs, executives and entrepreneurs in the space.
What’s Next
“As we look ahead and position ourselves for the future, we are focused internally on sound capital management, maintaining a healthy balance sheet, and executing on our multi-sector business development plan,” he continued.
The cannabis-focused engineering design and services company initially partnered with XS Financial in 2021 to provide its clients with CAPEX leasing solutions while launching its financial services division.
“In addition to strengthening the value of the solution that we provide our clients, we believe XS Financials’ competitively priced access to capital for operators will broaden our reach within the cannabis and food-focused indoor CEA market and further assist in minimizing and eliminating supply chain delays,” Nattrass commented on the move at the time.
The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.
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Photo: Courtesy of Geralt and Kindel Media by Pixabay
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The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!