Exxe Group to Reduce Debt, Adjust Future Share Count, Enhancing Shareholder Value

Rhea-AI Summary

Exxe Group (OTC PINK:AXXA) is enhancing its balance sheet by targeting the reduction of aged debt, which includes liabilities maturing in early 2022 estimated at up to $20 million. The company aims to convert up to $8 million of this debt into restricted preferred equity and plans limited stock issuance to mitigate future share count. Additionally, Exxe seeks to eliminate $4 million in accrued interest and long-term debt, positioning itself for greater private equity and real estate opportunities.

Positive

• Reduction of up to $20 million in aged debt, enhancing equity.
• Planning to convert up to $8 million of debt into restricted preferred equity, improving balance sheet strength.
• Aiming to eliminate $4 million in accrued interest and long-term debt.
• Limited stock issuance during the June 2022 quarter to reduce potential dilution.

Negative

• None.

• Exxe is strengthening its balance sheet by reducing aged debt and potential share count,
• Estimated up to $20M of early 2022 maturity liabilities to be reduced, eliminated, converted,
• Exxe's equity set to increase via debt reduction and favorable balance sheet amendments,
• Capital structure changes include limited stock issuance for the quarter ending June 30, 2022
• Exxe seeks to capitalize on greater investment opportunities via an improved balance sheet

NEW YORK, NY / ACCESSWIRE / March 9, 2022 / Exxe Group, Inc. (OTC PINK:AXXA), ("Exxe" or the "Company") diversified private equity, real estate, and fintech company is pleased to announce that it is in the process of strengthening its balance sheet by reducing, eliminating, or adjusting aged debt, thereby increasing equity and shareholder value, along with lessening potential future share count.

Management has identified up to $20 million of aged debt carrying the first half of 2022 maturities that shall be amended via conversion into restricted preferred equity, or into debt with maturities to extend additional 36 months. In conjunction with the balance sheet enhancements, Exxe plans to limit stock issuances during June 2022 quarter. These steps are designed to serve as a positive for the Company and its investors. First, debt reduction and simultaneous equity conversion should translate into a greater equity value and reduced liabilities. Second, completing a limited stock issuance in one transaction should reduce potential multiple additions to the share count and increase confidence in the overall business model.

As with the debt settlement, Exxe Group's objective is to eliminate up to $4M of accrued interest and long-term debt. Up to $8M or nearly 10% of total outstanding debt is planned to be converted to restricted preferred equity while only a limited issuance is planned in the June 2022 draft period representing less than 1% of total debts. This event will reduce potential, future share overhangs versus the completion of multiple transactions during the period. Exxe believes that this restructuring of debt will put Exxe in a stronger capital structure, potentially opening up greater private equity and real estate acquisition opportunities.

Exxe businesses that are targeted for debt recapitalizations or asset reallocations include Hemp and Agribusiness provider Flying Creek division(FCD), energy products provider Lucent Led Tech(LLT), AXXA Digital Communities(ADC), as well as AXXA Autoparts, M MOTO division(AMD). In the coming weeks, management will finalize specific changes for these businesses and possibly other Exxe related divisions. These changes include varying percentages of debt reduction and the remainder converting into restricted preferred equity. The remaining current debt portion terms shall be lengthened into future maturity dates.

Dr. Eduard Nazmiev, Exxe Group CEO, commented on the debt restructure and its potential impact on the Company. "At Exxe Group, our leadership team is always seeking methods to enhance shareholder value. We have listened to shareholders and advisors who have suggested ways to improve our capital structure and leverage potential, future acquisition opportunities. By reducing and converting aged liabilities with early 2022 maturities, and completing limited equity issuance in the coming months, we accomplish key objectives. Exxe enhances shareholder value and does so with limited stock issuance during the quarter ending on June 30, 2022. The changes we outlined in this release should position the Company to capitalize on new, greater opportunities while improving our debt and shareholder equity positions."

About Exxe Group

Exxe Group is a diversified fintech corporation focusing on acquisitions in the following sectors: real estate, sustainable technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise.

For additional information please visit the Company's

Website: http://www.exxegroup.com/
Twitter: https://twitter.com/exxegroup

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release.

CONTACT: Exxe Group IR: info@exxegroup.com

SOURCE: Exxe Group

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FAQ

What is AXXA planning regarding its debt?

AXXA plans to reduce up to $20 million in aged debt and eliminate $4 million in accrued interest.

How much debt will AXXA convert to restricted preferred equity?

AXXA plans to convert up to $8 million of its debt into restricted preferred equity.

What changes is AXXA making to its stock issuance?

AXXA aims for a limited stock issuance during the June 2022 quarter to minimize shareholder dilution.

What are AXXA's objectives with its balance sheet enhancement?

The objective is to strengthen its capital structure for greater acquisition opportunities.