Industry Leading Cannabis Equipment Leasing Company, Xtraction Services, Solves Capital Challenge for Processors
LOS ANGELES--(BUSINESS WIRE)--Sep 11, 2019--
Since announcing the launch of a sale-leaseback program on August 14 th, Xtraction Services Inc. (“XS” or the “Company”), an equipment leasing and extraction solutions company specializing in both cannabis and hemp, has seen an extensive amount of interest from customers wanting to take advantage of the opportunity to leverage existing equipment to unlock working capital for general operating expenses, expansion equipment, and growth initiatives.
“Sale-leasebacks are well understood and widely accepted in real estate and other sectors,” said David Kivitz, CEO of Xtraction Services, “And it’s clear by the number of processors, brands, cultivators and testing labs who have inquired about our sale-leaseback program, that this is a void in the cannabis industry that we are uniquely equipped to solve.”
The sale-leaseback program provides a unique opportunity for XS to diversify and scale its portfolio of customers. By thoughtfully engaging with a vast network of established businesses that have previously raised enough capital to make the initial investment in high-quality equipment and are often already in operation and revenue-producing, XS is able to reduce underwriting risk and avoid long lead times for new equipment, thereby creating significant added value to our shareholders. Sale-leasebacks are highly complementary to the Company’s existing suite of financings solutions.
In addition to companies inquiring about our sale-leaseback program, the Company’s leasing and services pipeline remains very robust. XS will be well positioned to add to its customer base with the funds from the completion of its RTO, anticipated to close on September 12 th. The Company’s common shares will begin trading on the Canadian Securities Exchange (“CSE”) under the ticker “XS”.
About Xtraction Services Inc.
Founded in 2017, Xtraction Services partners with equipment manufacturers and oil processors across the U.S. to fulfill their equipment needs. Xtraction Services provides flexible leasing options to help processors access the equipment they need to benefit from the rapidly expanding concentrates market, while affordably spreading their payments over time. Xtraction Services’ management team has a successful track record of creating shareholder value and in scaling high growth businesses, product development, finance, and operational best practices.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Xtraction Services’ beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Xtraction Services’ control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”.
By identifying such information and statements in this manner, Xtraction Services is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Xtraction Services has made certain assumptions. Although Xtraction Services believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Xtraction Services does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Xtraction Services or persons acting on its behalf is expressly qualified in its entirety by this notice.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190911005236/en/
CONTACT: Hannah Higerd
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA CANADA
INDUSTRY KEYWORD: SUPPLY CHAIN MANAGEMENT RETAIL OTHER RETAIL
SOURCE: Xtraction Services Inc.
Copyright Business Wire 2019.
PUB: 09/11/2019 10:00 AM/DISC: 09/11/2019 10:01 AM