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
News sentiment analysis
Sort by:
Descending
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
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