Elixxer Ltd. has secured a bridge loan through an unsecured promissory grid note for up to $1,000,000 from a non-arm's length lender. The loan matures on December 31, 2025, with a 24% annual interest rate, increasing to 34% upon default. The transaction constitutes a related party transaction as the lender is a control person of the company. Elixxer is utilizing financial difficulty exemptions from valuation and minority shareholder approval requirements. The loan was approved by independent board members, excluding Alexey Kanayev and Jayahari Balasubramaniam. The issuance remains subject to TSX Venture Exchange approval.
Elixxer Ltd. ha ottenuto un prestito ponte tramite una nota di debito non garantita fino a 1.000.000 di dollari da un finanziatore non indipendente. Il prestito scade il 31 dicembre 2025, con un tasso di interesse annuo del 24%, che aumenta al 34% in caso di inadempienza. L'operazione 猫 una transazione con parti correlate, poich茅 il finanziatore 猫 una persona di controllo della societ脿. Elixxer sta utilizzando le esenzioni per difficolt脿 finanziarie dai requisiti di valutazione e di approvazione da parte dei soci di minoranza. Il prestito 猫 stato approvato dai membri indipendenti del consiglio, esclusi Alexey Kanayev e Jayahari Balasubramaniam. L'emissione 猫 soggetta all'approvazione della TSX Venture Exchange.
Elixxer Ltd. ha asegurado un pr茅stamo puente mediante una nota promisoria no garantizada por hasta 1.000.000 de d贸lares con un prestamista relacionado. El pr茅stamo vence el 31 de diciembre de 2025, con una tasa de inter茅s anual del 24%, que aumenta al 34% en caso de incumplimiento. La transacci贸n constituye una operaci贸n entre partes relacionadas, ya que el prestamista es una persona de control de la empresa. Elixxer est谩 utilizando exenciones por dificultades financieras para evitar requisitos de valoraci贸n y aprobaci贸n de accionistas minoritarios. El pr茅stamo fue aprobado por miembros independientes del consejo, excluyendo a Alexey Kanayev y Jayahari Balasubramaniam. La emisi贸n est谩 sujeta a la aprobaci贸n de la Bolsa de Valores TSX Venture.
Elixxer Ltd. a obtenu un pr锚t relais par le biais d'une reconnaissance de dette non garantie pouvant aller jusqu'脿 1 000 000 $ aupr猫s d'un pr锚teur li茅. Le pr锚t arrive 脿 茅ch茅ance le 31 d茅cembre 2025, avec un taux d'int茅r锚t annuel de 24 %, qui passe 脿 34 % en cas de d茅faut. Cette op茅ration constitue une transaction entre parties li茅es, le pr锚teur 茅tant une personne de contr么le de la soci茅t茅. Elixxer utilise des exemptions li茅es 脿 des difficult茅s financi猫res pour 茅viter les exigences d鈥櫭﹙aluation et d鈥檃pprobation des actionnaires minoritaires. Le pr锚t a 茅t茅 approuv茅 par les membres ind茅pendants du conseil d鈥檃dministration, 脿 l鈥檈xception d鈥橝lexey Kanayev et Jayahari Balasubramaniam. L鈥櫭﹎ission reste soumise 脿 l鈥檃pprobation de la TSX Venture Exchange.
Elixxer Ltd. hat eine Zwischenfinanzierung durch eine ungesicherte Schuldscheinnote in H枚he von bis zu 1.000.000 USD von einem nicht unabh盲ngigen Kreditgeber erhalten. Das Darlehen l盲uft am 31. Dezember 2025 ab und hat einen j盲hrlichen Zinssatz von 24 %, der bei Zahlungsverzug auf 34 % steigt. Die Transaktion stellt eine Transaktion mit nahestehenden Parteien dar, da der Kreditgeber eine Kontrollperson des Unternehmens ist. Elixxer nutzt finanzielle H盲rtefallausnahmen von Bewertungs- und Minderheitsaktion盲rszustimmungspflichten. Das Darlehen wurde von unabh盲ngigen Vorstandsmitgliedern genehmigt, mit Ausnahme von Alexey Kanayev und Jayahari Balasubramaniam. Die Emission steht unter dem Vorbehalt der Genehmigung durch die TSX Venture Exchange.
Positive
Access to immediate funding of up to $1,000,000 to improve company's financial position
Loan approved by independent board members showing internal support
Negative
High interest rate of 24% annually, increasing to 34% upon default
Related party transaction with control person indicates potential difficulty securing external funding
Company acknowledges being in financial difficulty
Toronto, Ontario--(Newsfile Corp. - June 11, 2025) - Elixxer Ltd. (TSXV: ELXR) ("Elixxer" or the "Company") announces it has issued an unsecured promissory grid note (the "Note") to a non-arm's length lender (the "Lender") of the Company for available proceeds to the Company of up to $1,000,000 (the "Loan"). The Loan shall mature on December 31, 2025 (the "Term"). The Company may draw on the available proceeds of the Note from time to time during the Term, and the amounts outstanding under the Note bears interest of 24% per annum payable with any outstanding principal due at the end of the Term, and the interest increases to 34% per annum upon an event of default.
The issuance of the Note remains subject to receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange.
The issuance of the Note constitutes a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as the Lender is a control person of the Company. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(g) and 5.7(1)(e) of MI 61-101, as the Company is in financial difficulty and the transaction is designed to improve the financial position of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the issuance of the Note, which the Company deems reasonable.
The Loan was approved by the members of the board of directors of the Company who are independent for the purposes of the Loan, being all directors other than Messrs. Alexey (Alex) Kanayev and Jayahari (Jay) Balasubramaniam. No special committee was established in connection with the Note, and no materially contrary view or abstention was expressed or made by any director of the Company in relation thereto.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons as defined under applicable United States securities laws unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Elixxer Ltd.
Elixxer is a Canadian public company listed on the TSX Venture Exchange (TSXV: ELXR) and the US OTC-Pink exchange (OTC Pink: ELIXF). Elixxer is an investment company with investments in Canada and other countries and is currently looking for new high growth opportunities to invest in.
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.
This news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
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FAQ
What are the terms of Elixxer's (ELIXF) bridge loan announced on June 11, 2025?
The bridge loan is for up to $1,000,000, matures on December 31, 2025, with 24% annual interest rate, increasing to 34% upon default.
Why did Elixxer (ELIXF) secure a loan from a related party?
The company is in financial difficulty and the transaction is designed to improve its financial position, suggesting potential challenges in securing external funding.
Who approved the bridge loan for Elixxer (ELIXF)?
The loan was approved by independent board members, excluding Alexey Kanayev and Jayahari Balasubramaniam, as it constitutes a related party transaction.
What regulatory approvals are needed for Elixxer's (ELIXF) bridge loan?
The loan issuance requires TSX Venture Exchange approval and relies on exemptions from MI 61-101 requirements due to financial difficulty.
What is the interest rate on Elixxer's (ELIXF) bridge loan?
The loan carries a 24% annual interest rate, which increases to 34% per annum upon an event of default.
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