Xtraction Launches Cannabis/Hemp Manufacturing Equipment Leasing Program
JUL 26, 2018 - 1:52 pm
Xtraction Services (XS), a provider of equipment solutions for cannabis and hemp extraction, launched an equipment leasing program. XS will now provide in-house financing solutions to its customers. Oil processors like Halo Labs can now expand into new markets and gain access to critical equipment without the concern of how to access the capital to make these purchases.
“We have been using the XS 50L extraction machine for some time now and have been thrilled with its performance. Our team has had extensive experience with hydrocarbon and multiple other CO2 machine companies, including Eden and Waters, so we are very excited to standardize on equipment like the XS 50L,” Kiran Sidhu, CEO of Halo Labs, said. “The new leasing options allowed us to accelerate our expansion into multiple new markets including California and Nevada. Not having to come out-of-pocket for every new expansion location affords us a competitive advantage and allows us to pass those savings to our customers.”
Halo Labs recently announced a binding merger with a public company and a concurrent financing led by Canaccord Genuity. Sidhu is tenured in the industry, serving on the board of directors at Namaste Technologies and was an early investor in Golden Leaf Holdings.
The new XS leasing program combines a financing solution with a service offering. Clients have dedicated account managers that deploy on-site support and testing to ensure efficiency and equipment uptime. Preventative maintenance and 24/7 monitoring support further safeguard up-time and product consistency.
“We understood that a lot of brands didn’t have access to credit facilities that would provide them state-of-the-art equipment. Cannabis and hemp extracted products are the fastest growing sectors in the space and it is becoming very competitive. Using inefficient equipment that is not designed for cannabis or hemp creates a lot of waste and can be the difference between failure and success,” John Konop, underwriting director at XS, said. “By providing financing options, it provides manufacturers the immediate opportunity to use our industry leading equipment. It’s a win-win for manufacturers and consumers.”
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