A cross-practice team from Dentons advised XS Financial, Inc., a Canadian listed provider of financing for equipment and other qualified capital expenditures to growing cannabis companies, in a private placement of unsecured convertible notes in the aggregate principal amount of US$43.5 million.

Of the US$43.5 million, US$33.5 million was funded at closing and US$10 million is available on a delayed draw on the same terms until June 30, 2022. XS Financial also agreed to issue up to 16,750,000 share purchase warrants, being one warrant for each US$2.00 principal amount of notes. Each warrant entitles the holder to acquire one subordinate voting share of the XS Financial at an exercise price of CAD$0.45 until October 29, 2024.

The Dentons team was led by Cannabis practice group head Eric Berlin (Cannabis, Chicago), Corporate and Securities partner Rob Condon, (VTG, New York), and Capital Markets/Banking and Finance partner Lee Smith (Capital Markets, New York), with assistance from associates Elissa Barratt (Capital Markets, Atlanta) and Grant Levine (Corporate, New York) and law clerk Luís Pinto (Capital Markets, New York).

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