XS Financial Posts a Record Year With Over $147 Million in Capex Financing Commitments

$68 Million of Closed Lease Transactions in 2022; 167% Increase in YoY Closed Leases

LOS ANGELES, CA / ACCESSWIRE / February 1, 2023 / XS Financial Inc. ("XS Financial", "XSF" or the "Company") (CSE:XSF) (OTCQB:XSHLF), a specialty finance company providing equipment financing solutions to cannabis companies in the United States, is pleased to announce the following updates as of the year ended December 31, 2021. All amounts are expressed in U.S. dollars.

Advancing its position as a leading CAPEX financing company to the legal U.S. cannabis industry, XS Financial is pleased to announce that for the year ended December 31, 2022, the Company completed $68.0 million in new lease transactions, a 167% YoY increase. In addition, XSF closed on new commitments of $147.4 million, a 36% YoY increase, which will significantly drive new lease transactions in 2023.

XSF made significant progress in increasing its funding capacity while reducing its incremental borrowing cost. In 2022, the Company closed an upsized $39 million line of credit with an FDIC-insured bank and received its final $10 million funding tranche from convertible notes the previous year. In addition, due to the increased funding capacity, XSF retired its preexisting line of credit from a private credit fund, which had a higher borrowing rate than its new credit facility. This decrease in borrowing rate helped the Company achieve its first quarter of positive Net Distributable Earnings in 3Q22.

Year End 2022 Portfolio Highlights*

As of Q1/22

As of Q2/22

As of Q3/22

As of Q4/22

# of Active Leases

75

95

138

174

Total Closed Leases

$47.4 million

$66.6 million

$92.3 million

$108.7 million

Monthly Recurring Payments

$1.3 million

$1.7 million

$2.3 million

$2.7 million

Gross Lease Receivables

$48.1 million

$71.6 million

$99.1 million

$112.2 million

*Unaudited