Specialty finance company Xtraction Services entered into a sale-leaseback agreement with Halo Labs, a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates operating in California, Oregon and Nevada.
The leaseback agreement was provided against a variety of existing equipment, including, but not limited to, extraction, pre and post processing, freezers and security equipment, for $600,000 payable over a three-year term. The agreement also allows Halo to free up invested capital to put towards their expansion plans with no disruption to their current operations.
David Kivitz, XS CEO, commented, “We are very pleased to be working with Halo, a globally recognized and leading cannabis extraction company. Given its strong value proposition and blue-chip executive team, we feel Halo is well-positioned amongst its peers. With capital being extremely limited in the cannabis and hemp sectors, we continue to see a very robust pipeline of financing opportunities. XS is uniquely suited to provide flexible solutions to companies even in the current volatile environment.”
Kiran Sidhu, Halo CEO, added, “XS allows us the ability to tap funds quickly, leveraging our equipment allowing us to continue to build cash on our balance sheet. The XS team have been great partners over the years.”
Founded in 2017, XS specializes in providing equipment leasing solutions in the U.S. to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers, testing laboratories, among others.