Elixxer Ltd. to Enter Into Convertible Loan Agreement for US$1,183,000
MONTRÉAL, March 06, 2020 (GLOBE NEWSWIRE) -- Elixxer Ltd. (the “Corporation” or “Elixxer”) (TSX-V: ELXR and OTC-QB: ELIXF) is pleased to announce that it will enter into an investment agreement (the “Investment Agreement”) with international investors YA II PN, Ltd. and RiverFort Global Opportunities PLC (the “Lenders”) pursuant to which they will loan Elixxer an aggregate amount of US$1,183,000 (the “Loan”). The Loan will have a maturity date of January 1, 2021 (the “Maturity Date”) and will bear interest at the rate of 12% per annum. The proceeds of the Loan will be used to refinance maturing debt.
The principal amount of the Loan may be convertible into common shares of Elixxer (the “Shares”) at the option of the Lenders at a price per Share of CAD$0.05. The closing price of the Shares on March 4, 2020 was CAD$0.04.
The Corporation will also issue an aggregate of 14,200,000 common share purchase warrants (the “Warrants”) to the Lenders. Each Warrant will entitle the holder thereof to acquire one Share at an exercise price of CAD$0.05 until the Maturity Date.
The Investment Agreement will contain standard representations, warranties and covenants of the parties. Closing of the transaction and the issuance of all securities pursuant thereto is subject to the conditional approval of the TSX Venture Exchange. The parties intend to close the transaction as soon as reasonably possible following the receipt of such approval. Any securities issued by the Corporation upon closing of the transaction, upon conversion of the Loan or upon the exercise of the Warrants will be subject to restrictions on resale for a period of four months and one day from the date of closing. The Corporation is at arm’s length to the Lenders.
Elixxer also announces that it has agreed to extend the maturity date of three existing loans to insiders. In February 2018 (see press release dated February 16, 2018), the Corporation made loans to three of its officers and/or directors in order to fund the exercise by them of stock options and to fund the payment by them of related taxes. The loans had an initial term of two years, and the Corporation has agreed to extend the maturity date of each of the loans for a period of two years. The extensions remain subject to the approval of the TSX Venture Exchange.
About Elixxer Ltd. ()
Elixxer Ltd. is a leading cannabis investment firm with a focus on the legal global cannabis market. Through its growing portfolio of investment companies, ELXR is building a transversal integrated organization of interconnected legal cannabis companies with cultivation, processing and distribution in Australia, Jamaica, Switzerland, Italy, and Canada serving domestic and export markets. Elixxer Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSX-V: ELXR) and the US OTC-QB exchange (OTCQB: ELIXF).
For further information please contact:
President, John McMullen, ,
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.
