XS Financial Inc., (“XS Financial”, "XSF" or the "Company") (CSE: XSF) (OTCQB: XSHLF) a specialty finance company engaged in equipment leasing to owner operators of cannabis and hemp companies in the United States, is pleased to provide a corporate update highlighting some recent cost optimizations which will serve to improve bottom-line performance and profitability. With the current portfolio of revenue-generating leases and the Company’s ongoing access to capital through Archytas Ventures LLC (“Archytas”) and KushCo Holdings Inc. (“KushCo”) stock, XS remains well capitalized to continue to grow its leasing portfolio.
Cost Optimization Initiatives
Based on an internal assessment of the business with a special focus on streamlining costs, the Company has implemented changes to help improve the Company’s bottom line performance and profitability. These changes include the following:
David Kivitz, CEO of XS Financial commented, “We remain steadfast in our goals of growing revenues while streamlining costs to improve bottom-line results. As such, management has agreed to a reduction in cash compensation. Combined with additional savings from a reduction of the interest rate on our term loan, the restructuring of certain staff and the closure of the Florida facility, we expect to realize annualized savings of over US$500,000. This represents cash savings of almost 50% from our prior operating budget. We anticipate that these cost saving initiatives, combined with our current portfolio of leases, and new leases under review, will result in significant earnings, cash flow and profitability improvement in the months ahead.
“We continue to aggressively seek new opportunities and remain well capitalized to enact on new leases supported by our current pipeline. We are confident we will see additional new lease contract announcements in the coming weeks.”
About XS Financial
Founded in 2017, XSF specializes in providing equipment leasing solutions in the United States to owner/operators of cannabis and hemp companies, including cultivators, oil processors, manufacturers and testing laboratories. In addition, XSF provides a full range of consulting services including equipment selection and procurement, through its network of preferred vendor partnerships with original equipment manufacturers and equipment distributors. This powerful dynamic provides an end-to-end solution for customers which results in recurring revenues, strong profit margins, and a proven business model for XSF stakeholders.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200817005164/en/
Visit www.xsfinancial.com for more information or contact XS Financial at:
David Kivitz
Chief Executive Officer
Antony Radbod
Chief Operating Officer
Tel: 1-310-683-2336
Email: [email protected]