EVOLUTION BNK receives final GMP license for its facility in Pavia, Italy and Elixxer Ltd. also announces related party loan
MONTRÉAL, Aug. 30, 2019 (GLOBE NEWSWIRE) -- Elixxer Ltd. (TSXV: ELXR and OTC-QB: ELIXF) (“ELXR”) is pleased to announce that in addition to the news release of July 24th, 2019 Evolution BNK’s Italian certifying consultants Studio Sannino S.a.s have advised Elixxer that Evolution BNK has now received final GMP Certification for Production, processing, marketing of products derived from Industrial hemp for its new Pavia facility in Italy.
Mazen Haddad, Elixxer’s CEO, commented, “Evolution BNK reaching this milestone is a major achievement. This enables Evolution BNK to be prepared for medical grade growing once the government permissions and licenses are awarded. We are proud that two of Elixxer’s international investments are now GMP compliant, Little Green Pharma of Australia and Evolution BNK in Italy. In conjunction with Freia’s EFSA approved line of products, Elixxer’s portfolio companies are now able to expand their capacities and deliver safe pharmaceutical and GMP products for patient and consumers alike. The European markets will continue to expand as more countries approve access for patients and consumers. Our team has been tirelessly building operations to facilitate logistics connecting all of our partners’ operations to cater to the current and growing demand.”
Under Evolution BNK’s GMP license:
Agricultural sector certifications:
Management system for Good Agricultural and Collection Practice (GACP) and Good Manufacturing Practice (GMP):
- Industrial hemp cultivation.
- Good agronomic cultivation practices.
- Patent poisons - phytosanitary.
Certification of the indoor production sector and production trade:
Good Manufacturing Practice (GMP): Production, processing, marketing of products derived from industrial hemp.
Compliance with GMP requirements implies health and processing requirements for internationally coded good practices, applicable to all processing plants.
The GMP certification scheme for product processing is based on the HACCP system (RCE 852/04), ISO 22000, ISO 9001.
The implemented scheme will be certified for the analysis of good production standards (GMP) and will provide an independent verification of compliance with the production rules and the prerequisites necessary for the implementation of an effective production safety program based on the HACCP scheme (Hazard Analysis Critical Control Point - Analysis of critical control points risk).
Certification of the cosmetic production sector and marketing of cosmetic products:
Implementation of GMP Management System based on ISO 22716. The aim is the guarantee of product safety and health of final consumers.
Directive 76/768 / EEC - EC Regulation 1223/2009
Elixxer Loan Agreement from Related Party
Elixxer is also pleased to announce that it has entered into a loan agreement pursuant to which Arlington Capital LP (“Arlington”) had provided the Company with an unsecured loan in the amount of up to $4,670,000 (the “Loan”) for a term of four months as it appears in the Company’s Quarterly Financials which were filed yesterday. Today, both parties have agreed to extend this term to 12 months with all other conditions intact. Each advance made pursuant to the Loan shall bear interest at the rate of 12% per annum from the date of such advance, such interest to be calculated daily and payable on a quarterly basis. Elixxer is currently in advanced discussions with other funding providers for additional long-term non-dilutive funding.
The Company intends to use the proceeds of the Loan to fund its operations and for general working capital purposes.
Arlington currently holds a total of 104,000,000 common shares of Elixxer, representing approximately 19.85% of the issued and outstanding common shares. Accordingly, the Loan constitutes a “related party transaction” under Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (“Regulation 61-101”). In connection with the Loan, the Company is relying on the exemptions in Sections 5.5(a) and 5.7(1)(a) of Regulation 61-101 from the formal valuation and minority shareholder approval requirements, respectively, on the basis that the fair market value of the Loan is less than 25% of the Company’s market capitalization.
The Company did not file a material change report more than 21 days before the expected closing of the Loan as the details of the Loan were not finalized until recently, and the Company wished to close the transaction as soon as practicable for sound business reasons.
For further information, please contact:
John McMullen, President
Tel: (416) 803-0698
Mark Shinners, Chief Financial Officer
Tel:
Renmark Financial Communications Inc.
Melanie Barbeau:
Media – Kellie Coppin:
Tel: (416) 644-2020 or (514) 939-3989
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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 (). 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.
