urban-gro has entered into an agreement related to its investment in a private placement convertible note with XS Financial. Both companies mutually agreed that XSF would retire the Company’s convertible note for $2.3 million, a 10% discount to the Company’s current book value of the investment. The $2.3 million cash payment received is in addition to the $0.3 million of interest earned and received since making the original $2.5 million investment in Q4 2021.
Bradley Nattrass, Chairman and CEO, commented, “We believe XS Financial is a great company working to support the cannabis industry by helping clients finance their capital expenditures, and we look forward to continuing our strategic relationship. As we look ahead and position ourselves for the future, we focus internally on sound capital management, maintaining a healthy balance sheet, and executing our multi-sector business development plan.”
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