Business
Elixxer Ltd. Closes Amended Secured Loan with AIP Convertible Private Debt Fund L.P
Montreal, Quebec--(Newsfile Corp. - May 25, 2022) - Elixxer Ltd. (TSXV: ELXR) (OTC Pink: ELIXF...
About this update from Elixxer Ltd.
[{"type":"text","content":"Elixxer Ltd. Closes Amended Secured Loan with AIP Convertible Private Debt Fund L.PMontreal, Quebec--(Newsfile Corp. - May 25, 2022) - Elixxer Ltd. (TSXV: ELXR) (OTC Pink: ELIXF) (\"Elixxer\" or the \"Company) is pleased to announce that it has closed its previously announced (see press release of February 22, 2022) amended loan with AIP Convertible Private Debt Fund L.P., AIP Asset Management Inc. and related and affiliated companies (\"AIP\"). Further to the amendment, AIP has loaned the Company an additional $4 million (the \"Additional Disbursement\") which will: (i) have a maturity of 24 months from the date of closing; (ii) bear interest at the rate of 17% per annum; and (iii) be secured by a general security agreement on the assets of the Company in favour of AIP.On closing, the Company paid to AIP (i) a facility fee of $200,000; (ii) a closing fee of $250,000; and (iii) a due diligence fee of $75,000. The Company also issued to AIP a bonus of 643,518 common shares of the Company (the \"Bonus Shares\") at a deemed issue price of $1.08 per share, representing 20% of the net amount of the Additional Disbursement.The Company intends to use the proceeds of the Additional Disbursement for working capital purposes and to pursue future investments.The amended loan and the issuance of the Bonus Shares constitute related-party transactions under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") as AIP currently holders more than 10% of the outstanding voting securities of the Company. In respect of the amended loan and the issuance of the Bonus Shares, the Company relies on the exemption from the formal valuation requirement contained in Section 5.5(b) of MI 61-101 as none of the Company's shares trade on the enumerated exchanges. In respect of the amended loan, the Company relies on the exemption from minority shareholder approval contained in Section 5.7(1)(f) of MI 61-101 as the amended loan is on reasonable terms that are no less advantageous to the Company than if it were to be obtained from an arm's length party, and the amended loan is not convertible into or repayable by the issuance of equity of voting securities of the Company. In respect of the issuance of the Bonus Shares, the Company relies on the exemption from minority shareholder approval contained in S...