Cashing In On Cannabis: Urban-gro Secures Over $2M In Deal With XS Financial, What's Next?
Portfolio Pulse from Jelena Martinovic
Urban-gro, Inc. (NASDAQ:UGRO) has secured a deal with XS Financial Inc (CSE:XSF) (OTCQB:XSHLF) to retire its convertible note for $2.3 million, a 10% discount to the company’s current book value of the investment. The cash payment is in addition to the $0.3 million of interest earned since the original $2.5 million investment in Q4 2021. Urban-gro initially partnered with XS Financial in 2021 to provide its clients with CAPEX leasing solutions.
August 31, 2023 | 3:50 pm
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NEGATIVE IMPACT
XS Financial has agreed to retire Urban-gro's convertible note for $2.3M. This could impact the company's cash reserves.
The retirement of the convertible note means XS Financial will have to pay out $2.3M. This could impact the company's cash reserves and financial position.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Urban-gro has retired its convertible note with XS Financial, securing $2.3M in cash. This could strengthen the company's financial position.
The retirement of the convertible note at a discount to book value is a positive development for Urban-gro. It not only provides the company with cash but also reduces its liabilities, potentially strengthening its balance sheet.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100