Elixxer Ltd. Closes $4 Million Secured Loan

Rhea-AI Summary

Elixxer Ltd. has closed a secured loan of CAD$4,000,000 with AIP Convertible Private Debt Fund L.P. The loan, which has a 24-month term and an interest rate of 17% per annum, is secured by a general security agreement on all assets. Elixxer has paid various fees totaling CAD$525,000 and issued 46,333,333 common shares as a bonus to the lender. The funds will be used for working capital and future investments. The company is seeking to strengthen its financial position and grow its investment portfolio.

Positive

• Secured a loan of CAD$4,000,000, enhancing liquidity.
• Interest rate of 17% per annum, while high, provides capital for growth.
• Issued bonus shares to lender, aligning interests with stakeholders.

Negative

• High interest rate of 17% could strain future cash flow.
• Total fees paid to lender amounting to CAD$525,000 reduce available capital.

MONTRÉAL, Oct. 07, 2020 (GLOBE NEWSWIRE) -- Elixxer Ltd. (TSX-V: ELXR) (OTC-QB: ELIXF) (FRA: 2LQA) (“Elixxer” or the “Company”) is pleased to announce that it has closed its previously announced secured loan for the principal amount of CAD$4,000,000 (the “Loan”) with AIP Convertible Private Debt Fund L.P. (the “Lender”). The Loan has a term of 24 months, bears interest at the rate of 17% per annum and is secured by a general security agreement on all of the present and future assets of the Company.

On closing, the Company paid to the Lender (i) a facility fee of CAD$200,000; (ii) a closing fee of CAD$250,000; and (iii) a due diligence fee of CAD$75,000, in respect of the Loan. The Company also issued to the Lender a bonus consisting of 46,333,333 common shares of the Company (the “Bonus Shares”) at a deemed issue price of CAD$0.015 per share, representing 20% of the net amount of the Loan. The Bonus Shares are subject to a hold period of four months and one day from the date of their issuance.

Elixxer intends to use the proceeds of the Loan for working capital purposes and to pursue future investments.

About Elixxer Ltd. (www.Elixxer.com)

Elixxer is a Canadian public company listed on the TSX Venture Exchange (TSX-V: ELXR) and the US OTC-QB exchange (OTCQB: ELIXF).

Through its partners, Elixxer presently has significant interests in Australia, Jamaica, Switzerland, Italy and Canada.

For further information please contact: 

Mazen Haddad, CEO: mazen@elixxer.com 

Caution Regarding Press Releases

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Notice Regarding Forward Looking Statements

This press release may contain forward-looking statements with respect to Elixxer and its operations, strategy, investments, financial performance and condition. These statements can generally be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of Elixxer could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in Elixxer’s most recent Management’s Discussion and Analysis filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to Elixxer and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release, and Elixxer has no obligation to update such statements, except to the extent required by applicable securities laws.

FAQ

What is the loan amount secured by Elixxer Ltd.?

Elixxer Ltd. secured a loan of CAD$4,000,000.

What is the interest rate on Elixxer Ltd.'s loan?

The loan has an interest rate of 17% per annum.

What will Elixxer Ltd. use the loan proceeds for?

Elixxer Ltd. intends to use the loan proceeds for working capital and future investments.

Who is the lender for Elixxer Ltd.'s loan?

The lender for the loan is AIP Convertible Private Debt Fund L.P.

How many shares did Elixxer Ltd. issue to the lender?

Elixxer Ltd. issued 46,333,333 common shares to the lender as a bonus.