KushCo Holdings Inc (OTCQX:KSHB) noted that its investee company XS Financial Inc (CSE:XSF) (OTCQB:XSHLF) has entered into an agreement to provide Columbia Care (NEO:CCHW ) (OTCQX:CCHWF) (FRA:3LP) with an equipment lease facility of up to US$5.0 million to purchase new equipment.
XS Financial, in which KushCo Holdings has an around 19% equity interest, is a specialty finance company that provides scalable equipment leasing solutions to cannabis and hemp companies in the US. KushCo formed a partnership and invested in XS Financial in January 2020.
XS Financial CEO David Kivitz said in a statement: "We are pleased to be working with an industry-leading group like Columbia Care and commend their entire team for the professionalism they exhibited through this transaction. Columbia Care is operating in numerous growth markets with significant equipment needs and we are excited to support their growth through this initial, competitively priced facility."
READ: KushCo teams up with United Pacific to widen CBD distribution across 350 US gas stations and stores
KushCo noted that Columbia Care has already begun to draw down on the lease facility, which will be deployed in multiple tranches on a pro-rata basis and based on 36 and 48-month terms.
Columbia Care is one of the largest and most experienced cultivators, manufacturers and providers of medical and adult-use cannabis products, currently operating 100 facilities including 76 dispensaries and 24 cultivation and manufacturing facilities.
KushCo Holdings, a cannabis packaging company, has sold more than one billion units to growers, brand owners, processors and producers across North America, South America, and Europe. It specializes in child-resistant and fully customizable packaging, exclusive vape hardware and technology, and complementary solvents and natural products.
The company recently announced a partnership agreement with United Pacific, one of the largest owners of gas stations and convenience stores in the western United States, to expand CBD distribution across 350 locations in California, Nevada, Oregon, Washington and Colorado. KushCo said it will work with United Pacific to curate customized CBD Wellness Centers across 350 United Pacific locations.
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