Hello, eveyone. Thank you all for joining us during the Lytham Partners Spring 2021 Investor Conference. My name is Ben Shamsian, Vice President of Lytham Partners. Our next presentation comes from XS Financial, ticker symbol XSF on the Canadian Securities Exchange and XSHLF on the OTC. Presenting from the company is David Kivitz, CEO. A copy of the slide presentation is available on your webcast screen. Today, I've asked David to briefly run through the slide presentation. We will then engage in a fireside chat Q&A session. As a reminder, the company is available for one-on-one virtual meetings. If you have not already signed up, please send me an email at shamsian@lythampartners.com. That's S-H-A-M-S-I-A-N @lythampartners.com or visit lythampartners.com/virtual and click the One-on-one Meeting Request button. With that said, let me now turn the presentation over to David Kivitz, CEO of XS Financial. David, please proceed. Ben, thank you so much for that introduction. Always a pleasure to be presenting at a Lytham Partners conference. To everybody and investors who are in attendance, appreciate everybody making some time to learn more about XS Financial and the business that we're growing within the U.S. cannabis industry. XS Financial is providing CapEx and equipment financing for U.S. cannabis companies. I'm going to talk about that through the presentation here. As noted on Slide 3, not only do we have a company that is growing quickly, but the company recently, on March 3rd, closed a CAD 10.5 million equity unit financing, which should propel our growth moving forward. As shown on the right-hand side of the page, we currently underwrite to a conservative 55% lease-to-value. Our monthly recurring payments currently are just over CAD 260,000 a month. Those are in place for almost four years, as shown, 46 months. That's a total of just under CAD 11 million of gross receivables from our customers. The most important part of what is shown in our portfolio snapshot is actually the undrawn commitments. Those are commitments that we have made to some of the top-tier companies in the entire U.S. cannabis market who are existing customers, for which they will draw over the next 30 days, 60 days, 90 days on those commitments. Which will create more recurring payments and additional gross receivables, and ultimately more profitability for the company. One of the things that is particularly interesting is you see on average lease size by customer. We're really targeting companies that are looking for significant CapEx spend. We're not focused as much on smaller operators, and that will come through when we delve a little bit further into the customers themselves. As seen, again, growing very quickly in terms of our monthly recurring payments year-over-year, up 300%, as well as utilizing our vendor partnerships with now over 150 different equipment manufacturers, distributors who then carry, potentially some of them even an additional few hundred brands, where we have access to quite a bit of equipment around the industry, which we'll talk more about through the presentation. As shown on S lide 4, this is really some of the premier companies in the U.S. cannabis market. Columbia Care currently is one of our largest customers. They are the fifth or sixth largest cannabis company in the United States. Ayr Wellness, seen just below, also a top 10 U.S. cannabis company and one of the most profitable. SKYMINT is one of the largest operators in Michigan. PharmaCann is one of the largest private multi-state operators in the country. It really speaks to the quality of the underwriting, the target companies that we're looking for, and also speaks to much of the product that we're offering. This is really the thing to understand. Columbia Care has cash. Ayr has cash. Others of our customers have cash. Businesses in our industry have to set up infrastructure, real estate, staffing, and certainly all of the equipment and CapEx that goes into processing, cultivation, retail, manufacturing, all of these different segments of the chain on a state-by-state basis. That ultimately requires a significant amount of capital. There really is no one else in the entire marketplace providing this type of financing to these types of operators. We expect to grow with these companies over time. While we've given commitments out that range from, on the higher end, CAD 3.5 million up to CAD 5 million, we expect to see those commitment sizes go up significantly over time, and would really like to be funding these businesses for the next five or 10 or longer in terms of years. Their needs are constantly evolving. New states are legalizing one at a time, which they're setting up new infrastructure in each of those states as they do open. Within the states that they're operating in already, the demand is growing on the consumer level, and so the needs for more automated, bigger new equipment, all of that is required by these companies. We're really tapping into, ultimately, their infrastructure needs and providing them financing that matches up with the useful life of the equipment CapEx that they are putting into those facilities. As seen on Slide 5, everything is growing and growing quickly. In terms of monthly recurring payments, we expect to see that jump dramatically this year, especially on the back of our recent equity raise. Gross receivables, same concept. Cumulative funded leases, same thing to focus on there. Really, this is, I think, actually the most important part of the slide, is the active lease schedules. When we started off early on in this business, we were closing one to two lease schedules a quarter. As shown in Q4 of 2020, we closed two a month. So far, in Q1 of 2021, we've closed a little bit more than two a month, and that pace is now accelerating. The ability to close lease schedules is really a result of two things. One, the team, and two, the structure by which we provide financing to these companies, which is flexible. That's what those undrawn commitments speak to. We provide a company with an upfront commitment day one, we sign a master lease schedule, we agree to the terms, and then they can come back as often as they'd like under a set period of time, and as long as the equipment or CapEx need is qualified under our program, they can come back and use that funding as many times as they need. What it's led to is more lease schedules. It's as simple as adding a two-page schedule to the back of their master lease. In some cases, we've had companies draw five schedules, six schedules, and we're starting to see that number increase dramatically. Not only are we focused on continuing to fund the existing customers and having them draw on those commitments faster and with higher cadence, but also obviously signing new customers that are in our pipeline, which we'll talk more about through the presentation. As shown on Slide 6, really just a representation through a graph of how to think about our portfolio, how it's broken down by customer. Obviously, at this size, there's going to be some concentration. Here, obviously exposed to PharmaCann and Columbia Care. Fortunately, those are two of the best companies in the entire U.S. cannabis market, so we're comfortable with them. Over time, as we add new customers into the portfolio, that will come down. You can see net equipment value by state, fairly balanced. The way we think about states in terms of underwriting, if a company is only operating in one state, we do spend quite a bit of time underwriting the state-by-state dynamics of where they're operating. If it's a multi-state operator, we're really focused on corporate credit, and we'll go to the states where they need us and our financing. As seen, net equipment value by type. Historically, we have really focused on core processing and manufacturing equipment, which would be processing, packaging, testing. Cultivation, we're starting to do a bit more of, but again, very focused on top-tier credits for that type of equipment. Very interestingly, on the bottom right of the page, we show that roughly 70% of the equipment that we finance is actually not made for cannabis companies at all. It could be warehousing equipment like scissor lifts and forklifts. It could be vehicles. It could be testing equipment for any laboratory. It could be automated food processing equipment, packaging equipment, filling equipment that any CPG company would use. That's important because, A, the equipment obviously serves as one form of our collateral, and B, we get financed through bank sources and other lenders, and that's something that also matters for them because they want to see that there's adaptive reuse and a secondary market if ever the equipment were to be taken back. We try and be thoughtful about that, and while we're focusing on financing what the customers need, the benefit is that these companies, for the most part, are using traditional equipment for most industries. As seen on Slide 7, we've accomplished quite a bit recently, and I think that's really the thing to understand. Almost 90% of the capital that we've deployed has happened since the second half of 2020. The market awarded us for that by giving us a significant amount of equity in March. Now we're executing on funding all of our commitments, converting our pipeline. We just launched our syndication desk, where we're starting to sell off lease streams. We did that with a family office. Interestingly, the family office of the gentleman who used to be the CEO of Green Thumb Industries, which is the second-largest cannabis company in the U.S. We're very tied into our industry. All of these names provide credibility. We're executing, we're performing. Nothing reinforced this more than what's shown on the slide that shows that we actually have a credit facility from a U.S. commercial bank. The fact that we are a leasing company, obviously not a cannabis company, certainly helped. Our portfolio is focused on cannabis, that was a very big credibility stamp on a host of levels, not only credit, but also industry affiliation and the bank getting comfortable with it. We expect to see that bank line increase over time. Like any finance company, want to make sure that we are funding our future growth, not exclusively with equity, but with well-priced leverage, because we have a very understandable and recurring cash flow stream that comes off our leases, which makes our business very easy to finance. We're looking forward to seeing the growth through some of those lending and syndication products. As shown on Slide 8, this really just provides a bit of an overview of some, certainly not all, of the vendors that we work with. Some of these groups have been around for 50, 60, 70 years, others a little bit more recent, but speaks to some of the quality of the groups and the equipment that we're financing. On Slide 9, really just laying out the product. One thing to understand is we make our return in two ways, and it's why the equipment vendors are so important. Not only do they provide lead gen for the company and send us customers who need financing for their equipment, but we make our return principally from interest that we charge the lessee, those who are actually taking funds from us to purchase equipment. We also receive purchase discounts from all of the vendors that we work with. What that allows us to do is not charge all of the return to the customer, which allows us to make our rates very industry competitive, while at the same time, making sure that we are generating returns that are compelling for us and our investors. Ultimately, that's why we are achieving right now a portfolio-wide return in excess of 20% on an unleveraged basis. Of course, as we add more financing to our portfolio, that will continue to drive the returns to equity even higher than that. On Slide 10, one of the really important things to understand is the size of this market. For those who are not as familiar with the U.S. cannabis industry, the infrastructure needs, the equipment needs, the CapEx needs of these companies that we work with is staggering. They are building the same infrastructure over time in 50 different markets, until the U.S. changes its federal legality rules surrounding cannabis. Even once it does, there will be state-by-state dynamics that allow companies not to import goods. There may become regional facilities that will require even more financing for different types of CapEx and equipment that can produce at higher levels. The industry's going to change. The industry's going to evolve. Right now, we really like where we sit, working with some of the largest companies in the space who are going to need significant amounts of funding. We're obviously addressing that. There is going to be much more opportunity over the next five and 10 years to grow this into a half a billion to billion-dollar portfolio, and that's without addressing the entire marketplace. We expect to get a good segment of the market, and that's really what we're focused on, but without sacrificing credit and credit standards. We do think much more about corporate credit than we do the actual equipment values. We want to make sure that we're getting repaid and getting repaid in full. We think that there's going to be a significant amount of business and that the TAM is quite interesting over the next five years. On Slide 11, you can see the team a bit here. My background and David speaking again, CEO and Director of the company. I started my career in structured finance, for CapitalSource, and then worked for the largest alternative investment advisor in the U.S., Hamilton Lane Advisors, before going to a family office in New York. From that family office, the president and I, after the housing market crashed in 2008, actually moved out to California and started acquiring distressed housing communities with private equity backing. We ended up acquiring about CAD 100 million of distressed land. We launched a full-scale production home building company to build out all of that land. Between 2013 and 2018, generated about CAD 250 million of revenue as a private company. We generated very compelling returns to our equity investors and borrowed and paid back about CAD 225 million of both private and bank construction and land financing. All of the lenders of which got paid back in full. So we understand how to bring leverage into a portfolio. We understand how to grow companies to scale. Interestingly, think that we can get this significantly larger than that company for a host of reasons. Two individuals who I'm going to really focus on this slide, Jim Bates and Ken Senter, both of whom have 25 and 30-year backgrounds in equipment leasing, bring a tremendous amount of expertise to our business and really run the guts, the documentation, credit underwriting, operations, the back and forth with our customers, who really keep us centered on making sure that we run and build a platform that is really geared to scale, not a mom-and-pop type of operation. As seen on Slide 12, something that I haven't touched on as much. KushCo Holdings, which is a significantly larger public company, in the U.S. cannabis market. They are the largest supplier of packaging to the U.S. cannabis market. They acquired a 19.9% stake in our business in early 2020. Their CFO has a board seat. They've been excellent partners, both in terms of lead generation, strategic discussion, and certainly an access point for us to investor relations. One of the things that they have requested for their own benefit, and that we've actually requested as well, is really to use their platform to help bring awareness to our business. While today we are growing quickly, we need to build out the investor audience of folks who are actually seeing all of the progress that we're making. We intend to lean into that relationship. Importantly, between the founders management and KushCo, you're looking at about 30% of the ownership of the company, and very heavily aligned to see the success of the business. We're excited about that partnership. We continue to perform and execute with it and see different ways that we can take advantage of that relationship. Shown on Slide 13, again, having just recently completed an equity financing, we are trading at just under a CAD 40 million market cap and growing the business quickly. We do have some unsecured convertible debentures that do not mature until 2024, so we have no near-term debt bullets or otherwise on the company. Obviously with this most recent equity financing, very well capitalized to go and take advantage of the opportunity in front of us, fund our pipeline, fund our undrawn commitments to our existing customers, and continue propelling that growth forward. That's XS Financial. David, thank you very much for that overview. Let's expand a bit on a few topics. The company, as you mentioned, recently raised about CAD 10.5 million of equity. What are the planned uses for the proceeds, and how will this impact the company's performance in the coming year? We're fortunate in the sense that right now our monthly recurring payments from our existing leases cover our monthly spend on G&A. When we went to market, the purpose of raising this equity was to fund new leases and to use that balance sheet strength to go and ultimately secure more leverage so that we can continue growing the portfolio. The use of proceeds supporting this financing is really all geared towards growing the portfolio. We have one or two corporate initiatives that we're also considering. For the most part, our business is about blocking and tackling and continuing to fund the customers that we are, secure more leverage, and grow those monthly recurring payments, profitability, and otherwise forward, which will give us a lot of flexibility in the future. Great. You talked about some of the companies, Columbia Care, Ayr Wellness, both well capitalized. Why do companies like this, who have resources of their own, choose to work with XS Financial? I think there's a few reasons. The first, and I always like to point this out. Equipment financing, CapEx financing exists in every industry around the world, and so there's no reason to believe that it would not exist in cannabis. The reason that it doesn't today, outside of the product that we're offering and a few mom-and-pop operators that are trying to do it, is the industry is federally illegal. Most of the other leasing companies that are out there are not allowed to participate while we are building a capital structure that is intended to participate. Because capital is locked out of the marketplace, it allows us to generate higher returns, provide a product that has historically been available in other industries, and ultimately allow companies, which is the primary reason to do this, to access financing that is really catered to the useful life of the CapEx and the equipment that they're actually acquiring. There's a natural reason for these businesses to be using it. The other side of that is we are also industry experts. We understand the complex nature of underwriting a cannabis business. We understand the complex nature of the equipment that they are working with. We understand the vendors and have relationships with all the vendors that they are used to working with. Not only do I think there's a natural financial benefit for them to work with this product and not go dilute themselves and raise equity to purchase equipment and CapEx, but I also think we're in the industry together. We're partners growing an industry together, and that's really how we communicate our product to them, is to say, "We understand your challenges uniquely, and we want to continue to grow with you, and we're going to help continue to fund you." Assuming the credit quality continues to stay at a dynamic that we're comfortable with and that we underwrite to, we will continue to fund them. I think it's primarily those reasons. In addition to that, the capital that is being raised by the companies that we're financing, as much as they do have cash on hand, they're expanding at an incredible clip. They're using that capital for M&A. They're using it for hiring, they're using it for marketing, they're using it for other things that they also need, they can tap on XS Financial for incremental financing, which they've come to appreciate. Got it. You talked about federally legalized cannabis. If, in fact, cannabis does become federally legalized, what will be the impact on XS Financial? Yes, it's a great question, and one that we get asked a lot. We're excited for legalization. Obviously, legalization may come in multiple forms. It might be decriminalization, it might be banking reform, it might be safe harbor on major exchanges. It could be any number of different ways that it could roll out. State-by-state commerce may or may not change as a result of this. I think part of what happens with legalization is you see an increase in institutional capital. You see an increase in up-listing to major exchanges. You see a lot more bank financing coming into the industry. It's not all positive. It's a pro and a con. Ultimately, I think it's a net positive for our business. One, I don't think in an industry like this, banks are going to rush out and just start financing equipment for all of the companies that we work with. It's a newer industry. It's still a vice industry. I do think, much like we have set up now, that banks will be much more likely to lend to us as an equipment finance company that runs essentially what is a non-bank bank function, as we have now with our existing bank lender. We view more banks coming into the space as a big positive. We think that ultimately is going to drive down our cost of capital much faster. Again, I always point to how many successful and profitable equipment financing firms there are in traditional industries where capital is more prevalent, is more available. We expect to build a very big book of business inside this industry. We think we're going to continue to do that here until the point that we even get to legalization, which we still think is a couple of years away. Once we get there, we think that that's going to be very beneficial in terms of broadening our investor pool, our support, our bank relationships, the possibility of maybe looking at a major exchange up-listing and things like that. Generally, as most things, it comes with pro and con, but ultimately, we think it would be a net positive for our business. David, thank you very much for your time today.