Elixxer Ltd. Closes $4 Million Secured Loan
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: [email protected] Caution Regarding Press ReleasesNeither 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 StatementsThis 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.