Elixxer Ltd. to Enter Into Convertible Loan Agreement for US$1,183,000
March 06 2020 - 8:00AM
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.
(www.elixxer.com)
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, +1-416-803-0698,
john@elixxer.com
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.
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