Elixxer Ltd. announced that it has entered into an agreement with AIP Convertible Private Debt Fund L.P. (AIP) to amend its existing secured loan with AIP. Further to the amendments, the principal amount of the Loan will increase to $8 million, with an additional $4 million being disbursed to the Company. The amended Loan will: have a maturity of 24 months from the date of closing of the Additional Disbursement; continue to bear interest at the rate of 17% per annum; and continue to be secured by a general security agreement on the assets of the Company in favour of AIP.

On closing of the Additional Disbursement, the Company will pay to AIP a facility fee of $200,000; a closing fee of $250,000; and a due diligence fee of $75,000. Upon approval of the TSX Venture Exchange (the "TSXV"), AIP shall also receive a bonus of 643,518 common shares of the Company 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 from the amended Loan for working capital purposes and to pursue future investments.

Closing of the amended Loan and the issuance of the Bonus Shares remain subject to the entering into of definitive documentation and acceptance of the TSXV. The amended Loan and the issuance of the Bonus Shares will 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 will rely 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 will rely 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 will rely on the exemption from minority shareholder approval contained in Section 5.7(1)(a) of MI 61-101 in that the fair market value of the Bonus Shares does not exceed 25% of the Company's market capitalization as determined under MI 61-101.