XS Financial Enters Into Definitive Agreement to Be Taken Private

LOS ANGELES, CA / ACCESSWIRE / June 24, 2024 / XS Financial Inc. (CSE:XSF) has entered a definitive arrangement agreement with XS Acquisition Portfolio LLC, an affiliate of a US alternative asset fund. The Purchaser will acquire all outstanding subordinate and proportionate voting shares of XS Financial for a cash price of Cdn$0.05265 per SV Share and Cdn$52.65 per PV Share.

The transaction provides XS shareholders with immediate liquidity and eliminates the need for additional capital to fund future operating expenses. The board of directors of XS, upon recommendation from the Special Committee, approved the arrangement, which offers compelling value relative to other options considered.

The arrangement is expected to close by Q3 2024, pending shareholder, court, stock exchange, and regulatory approvals. Key shareholders supporting the deal hold over 48% of SV Shares and 99% of PV Shares.

All XS Options and Warrants will be canceled upon transaction completion. Advisors engaged in the process include Compass Point Research & Trading LLC Inc. and Schulte Roth & Zabel LLP.

The arrangement aims to delist XS shares and cease the company’s reporting issuer status under Canadian laws. XS Financial, a provider of CAPEX financing solutions to US cannabis companies, will become privately held following the transaction.