Elixxer Ltd. announces $4 million secured loan and offers


MONTREAL, Aug. 28, 2020 (GLOBE NEWSWIRE) — Elixxer Ltd. (TSX-V: ELXR) (OTC-QB: ELIXF) (FRA: 2LQA) (“Elixir“or the”Company”) announces that it has entered into a loan agreement with AIP Convertible Private Debt Fund LP (the “Lender”) for a secured loan in the principal amount of CA$4,000,000 (the “Ready”). The loan will have a term of 24 months and will bear interest at the rate of 17% per annum. The loan will be secured by a general security agreement on all present and future property of the Company.

At closing, the Company will pay the lender (i) a loan charge of CAD $200,000; (ii) closing costs of CA$250,000; and (ii) a follow-up fee of CA$75,000, in respect of the Loan. Upon approval by the TSX Venture Exchange (the “TSXV“), the Lender will also receive a premium of 46,333,333 common shares (the “Free shares”) of the Company at a deemed issue price of C$0.015 per share, representing 20% ​​of the net loan amount.

The Company intends to use the loan proceeds for working capital purposes and to pursue future investments.

The Company also announces a proposed private placement without intermediary with a strategic investor in the amount of US$400,000 (USD/CAD exchange rate 1.307 for CAD$522,800) for 34,853,333 shares of the Company (the “Units“) at a price of CA$0.015 per unit (the “Private placement”). Each unit will consist of one common share of the Company and one common share purchase warrant. Each warrant will be exercisable for a period of 60 months from the date of issue at an exercise price of C$0.05 each.

No commission or finder’s fee will be paid in connection with the Private Placement. The Units will be issued pursuant to an exemption from the prospectus requirements of applicable securities legislation, and all securities will be subject to a hold period of four months and one day from the date of issue.

The proceeds of the private placement will be used by the Company for general working capital purposes. Closing of the private placement is subject to TSXV approval and customary closing conditions.

Mazen Haddad, CEO of Elixxer, said, “We are very pleased to be working with AIP. This financing is intended to enable Elixxer to execute its acquisition strategy which will target growth companies with revenue and cash flow.

About Elixxer Ltd. (www.Elixxer.com)

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

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

For more information, please contact:

Mazen Haddad, CEO: [email protected]

Caution regarding press releases

Neither the TSX Venture Exchange nor its Regulation Services 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 regarding Elixxer and its operations, strategy, investments, financial performance and condition. These statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intend”, “believe” or “continue” or their negative. or similar variants. Elixxer’s actual results and performance could differ materially from those expressed or implied by such statements. These statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Certain important factors that could cause actual results to differ materially from expectations include, among others, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in Elixxer’s most recent MD&A 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 undertakes no obligation to update such statements except as required by applicable securities laws.


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