Elixxer Ltd. announces secured loan of $ 4 million and offers

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MONTREAL, August 28, 2020 (GLOBE NEWSWIRE) – Elixxer Ltd. (TSX-V: ELXR) (OTC-QB: ELIXF) (FRA: 2LQA) (“Elixir“or the”Society“) announces that it has entered into a loan agreement with AIP Convertible Private Debt Fund LP (the”Lender“) for a guaranteed loan in the principal amount of C $ 4,000,000 (the”To lend“). 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 current and future assets of the Company.

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

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

The Company also announces a private placement project without a broker with a strategic investor in the amount of US $ 400,000 (USD / CAD exchange rate of 1.307 for CAN $ 522,800) for 34,853,333 units 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 CA $ 0.05 each.

No commission or intermediation commission will be paid in connection with the Private Placement. 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 happy to work with AIP. This financing is intended to allow Elixxer to execute our acquisition strategy which will target growing companies with income and cash flow. “

About Elixxer Ltée (www.Elixxer.com)

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

Through its partners, Elixxer currently holds 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 the negative of these. or similar variations. Elixxer’s actual results and performance 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. Certain important factors that could cause actual results to differ materially from expectations include, among others, general economic and market factors, competition, government regulations and the factors described under “Risk Factors and Risk Management” in Elixxer’s most recent MD&A filed on SEDAR (www.sedar.com). Cautionary statements qualify all forward-looking statements attributable to Elixxer and persons acting on its behalf. Unless otherwise indicated, 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.


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