Cannapany on February 6, 2020 No Comments
The cannabis company is taking a substantial stake in a cannabis financing operation
A specialty financing company is reaching more cannabis businesses and a new partnership with a company was just announced. Xtraction Services Holding Corp. is a financial company dedicated to providing equipment-leasing opportunities to the legal hemp and marijuana operators in the US. KushCo Holdings, Inc. is getting involved with the company, having just signed a deal that will see it take a 19.9% ownership interest in its operations. This new partnership was announced last week and will benefit KushCo as it gives financing solutions for equipment leasing to thousands of cannabis and cannabidiol (CBD) operators.
Xtraction Services targets its services to cultivators, oil processors, manufacturers and testing laboratories, among many other cannabis-related businesses. The company offers different types of consulting services, such as assistance in the selection of the equipment and leasing solutions through establishing connections with the equipment’s original manufacturers. Xtraction Services comes as a highly-needed service by the industry to access financial solutions due to current restrictions to access traditional banking.
“For the past several months, we have been evaluating ways in which we can successfully enter the equipment financing arena, which we identified early on as being another growth driver and margin accretive business that can significantly complement our existing ecosystem of ancillary products and services,” Chairman and CEO of KushCo’s, Nick Kovacevich, said of this new partnership. “After much due diligence and internal review, we realized that an investment in and partnership with Xtraction Services-who has already built a robust equipment financing platform, including relationships with more than 70 OEMs and distributors across the laboratory, testing, processing, and extraction space-is the best option for KushCo and our customers.”
According to Kovacevich, this move will have a positive effect on their customers, as they have been requesting equipment financing solutions and moreover, to the CBD segment since it will facilitate the delivery of biomass for the extraction process.
Congratulation!