XS Financial Proposes Repurchase and Cancellation of Unsecured Convertible Notes

XS Financial, an equipment finance company serving the cannabis industry in the U.S., proposed to repurchase and cancel certain of its unsecured convertible notes that were originally issued on Oct. 28, 2021, and Oct. 10, 2022.

The notes were originally issued to various holders in the aggregate principal amount of $43.5 million, together with one share purchase warrant for every $2 principal amount of notes, with each warrant being exercisable to acquire one subordinate voting share of the company at an exercise price of C$0.45 ($0.33) in accordance with the terms thereof.

The note repurchase will be implemented with respect to one note in the principal amount of $2,584,964 as at June 30, 2023 (the subject note), which will be repurchased and cancelled by the company in consideration of a cash payment by the company to the holder of the subject note in the aggregate amount of $2,326,468 in satisfaction of all principal and interest due and owing thereunder. The holder of the subject note will also agree to the cancellation of an aggregate of 1.25 million warrants for no additional consideration in connection with the note repurchase.

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Terry Mulreany
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Susie Angelucci
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