XS Financial Inc. ('XS Financial', 'XSF' or the 'Company') (CSE: XSF) (OTCQB: XSHLF), a specialty finance company providing equipment leasing solutions to cannabis and hemp companies in the United States, is pleased to announce results for the quarter ended September 30, 2020 ('Q3/20') and for the nine-month period ended September 30, 2020 ('YTD/20').
All amounts are expressed in U.S. dollars unless indicated otherwise.
The Company's liquidity needs are primarily to finance growth initiatives, including equipment acquisition, leasing activities, debt services, and for general corporate purposes. At the end of Q3/20, the Company had working capital of $348,839 (compared to working capital of $1,802,038 at the end of Q3/19), including cash of $717,012 (compared to $2,487,293 at the end of Q3/19) and marketable securities ($843,071). The decrease in working capital was primarily attributable to the purchase of servicing equipment and an increase in trade payables and accrued equipment purchases related to new financing leases, and the ongoing funding of operations. These decreases are partially offset by the value of shares received in KushCo, which is recognized as an investment. The Company's liquidity was significantly boosted post-quarter end through the collection of lease receivables, and the receipt of a new $2 million senior secured revolving credit facility with an FDIC insured bank. The Company's unaudited interim condensed Financial Statements ('FS') and Management Discussion & Analysis ('MDA') will be filed under the Company's profile on www.sedar.com, and will also be available on XS Financial's corporate website at www.xsfinancial.com.
About XS Financial
Founded in 2017, XSF specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies. In addition, XSF provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers which results in recurring revenues, strong profit margins, and a proven business model for XSF stakeholders. The Company's common shares are traded on the Canadian Securities Exchange under the symbol 'XSF' and in the United States on the OTCQB under the symbol ' XSHLF.'
Contact:
Tel: 310.683.2336
Email: ir@xsfinancial.com
Forward-Looking Information
This press release contains 'forward-looking information' and may also contain statements that may constitute 'forward-looking statements', collectively 'forward-looking information', within the meaning of applicable Canadian securities legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent the beliefs and expectations regarding future events about the business and the industry and markets in which XS Financial operates, as well as plans or objectives of management, many of which, by their nature, are inherently uncertain. CSE: XSF 4 Generally, such forward-looking information can be identified by the use of terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or may contain statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'will continue', 'will occur' or 'will be achieved'. Forward-looking information contained herein may include but is not limited to, any additional leasing opportunities and the ability to capitalize on such and the timing thereof. Forward-looking information is not a guarantee of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. XS Financial Inc., does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
XS FINANCIAL INC. 
