XS Financial, a specialty finance company providing CAPEX and equipment financing solutions to cannabis companies in the United States, has entered into a new lease agreement with Green Dragon, a vertically integrated multi-state operator and Eaze, a cannabis delivery marketplace.
Green Dragon and Eaze have been approved for a $15 million CAPEX lease facility, with an immediate drawdown of more than $2 million to purchase equipment with up to 60-month terms. This equipment acquisition will enhance the capabilities of existing processing facilities and buildouts for their Colorado and Florida expansion.
Green Dragon has operations in Colorado and Florida with more than 500,000 square feet of cultivation and product manufacturing facilities.
"The team at XS Financial has been great to work with from underwriting to funding. The XS facility allows us to draw on CAPEX funds, as needed, for our expansion in Florida and Colorado without incurring any unused line fees. Additionally, with their sale-leaseback program, we could unlock existing investments on previously purchased equipment. Having access to non-dilutive financing is a huge win for our shareholders," said Trey Handley, CFO of Green Dragon and Eaze.