XS Financial, a specialty finance company engaged in equipment leasing in the United States, closed the acquisition of a California lenders license (CFL), through the purchase of a local entity in California as previously announced. XS Financial issued 450,671 subordinate voting shares of XS at a price of $0.29 per share, subject to a 12-month lockup, and made a cash payment of $13,651 in consideration of the acquisition of all of the issued and outstanding shares of the target company.

The acquisition of the lender license allows XS to expand its lending and financing capabilities in the state of California. The company expects the license to play a crucial role given the steady increase in inbound requests from customers with business operations in California.

“We are thrilled to have obtained our California lenders license,” David Kivitz, CEO of XS, said. “It is estimated that California will represent as much as one in four of all dollars spent in the U.S. on legal cannabis by 2024. While once very fragmented, we are seeing the emergence of true manufactures in the market and will continue to assist growth with quality operators.”

Founded in 2017, XS specializes in providing equipment leasing in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers and testing laboratories.