XS Financial, a specialty finance company providing CAPEX and equipment financing solutions to cannabis companies in the United States, entered into an upsized $39 million line of credit with Needham Bank increasing its commitment from $20 million to $35 million and remaining as the administrative agent. The remaining $4 million is with an FDIC-insured bank participating in the Credit Facility.

The Credit Facility has a term of two years from its initial closing, maturing in August 2024. Loans made under the line of credit will bear interest at an annual rate equal to the Wall Street Journal Prime rate plus 1 percent, with a floor of 6 percent, and may be prepaid with no penalty at any time.

XS Financial intends to use loan proceeds, together with cash on hand, to fund additional CAPEX and equipment leases with new and existing customers.

David Kivitz, CEO of XS Financial, said, "We are pleased to expand our partnership with Needham Bank, which is building one of the premier banking platforms for the U.S. cannabis market. This upsized Credit Facility provides XS Financial with significant financial resources to expand our market leading portfolio of equipment leases. Our ability to close this enhanced Credit Facility with Needham Bank with favorable pricing and terms speaks to our financial strength and the growing number of high-quality customers we support, including several of our industry's largest companies. We are thrilled to continue funding our existing and target borrowers at scale for their critical expansion projects when other capital sources are slowing."

James Daley, Senior Vice President - Director Structured Finance of Needham Bank, said, "We are thrilled that we can provide XS Financial with the funding they need to grow their portfolio through this amplified Credit Facility. It has been a great experience working with their team to update this line of credit, and I look forward to continuing to build our relationship with XS Financial."

Joseph Campanelli, Chairman, President & CEO of Needham Bank, said, "At Needham Bank, we place a strong emphasis on building lasting customer relationships rather than simply completing transactions and our expanded relationship with XS Financial proves just that. This Credit Facility is a true testament to James' and our lenders' ability to understand a company's unique needs and goals and tailoring a solution to support them."