Elixinol Successful In Completing Entitlement Offers

Elixinol announces completion of entitlement offer and details of retail entitlement offer.

Elixinol Global Limited (ASX:EXL) is pleased to announce the successful completion of the institutional component of its accelerated non-renounceable pro-rata entitlement offer, details of which were announced to ASX on Tuesday, 5 May 2020 as well as provide an update on the Entitlement Offer.

We are very pleased with the result of the capital raise as it represents a confident endorsement for our strategy to create a global nutraceutical wellness brand.Oliver Horn, CEO

Outcome of the Institutional Entitlement Offer

The institutional component of the Entitlement Offer closed on Tuesday, 5 May 2020 and raised approximately $5.3 million from the subscriptions for new fully paid ordinary shares in the Company at a price of $0.20 per New Share. New Shares in respect of institutional entitlements not taken up under the Institutional Entitlement Offer and New Shares that would have represented the entitlements of ineligible institutional shareholders were offered and placed to other institutional investors.

Elixinol Global's CEO, Oliver Horn, said: " Elixinol has built a strong position in key global markets and with the additional liquidity, we can now focus on building a strong consumer brand. Importantly, this is also an endorsement of our new management's ability to create value for
its shareholders."

Approximately 26.7 million New Shares subscribed for under the Institutional Entitlement Offer (including as part of the institutional shortfall bookbuild) are expected to be issued on Thursday, 14 May 2020 and commence trading on the ASX on the same day. New Shares issued under the Offer will rank equally with existing Elixinol Global shares as at their date of issue.

Underwriting commitment by the Lead Manager

The Company and Bell Potter Securities Limited (the Lead Manager) have agreed to amend the offer management agreement and the Lead Manager will now fully underwrite the Institutional Entitlement Offer, and 50% of the retail component of the Entitlement Offer (Retail Entitlement Offer) on the terms and conditions of that agreement. Accordingly, this means that the Company has, subject to the terms of the offer management agreement,
certainty of raising at least approximately $8.2 million from the Entitlement Offer. Details of the termination rights of the Lead Manager under the offer management agreement are set out in Annexure A to this announcement.

Fees payable to the Lead Manager remain as disclosed in the Appendix 3B released by the Company on 5 May 2020.

Retail Entitlement Offer

The Retail Entitlement Offer seeks to raise a further $5.6 million via a 1 for 2.51 accelerated pro-rata non-renounceable entitlement offer of approximately 28.2 million shares. The Retail Entitlement Offer is expected to open on Tuesday, 12 May 2020 and close at 5.00 pm (AEST) on Thursday, 21 May 2020.

The despatch of the retail entitlement offer booklet for the Retail Entitlement Offer Booklet along with personalised Entitlement and Acceptance Forms for Eligible Retail Shareholders is scheduled to occur on Tuesday, 12 May 2020.

The terms and conditions under which Eligible Retail Shareholders may apply for New Shares or Additional New Shares (as applicable) under the Retail Entitlement Offer are outlined in the Retail Entitlement Offer Booklet. Copies of the Retail Entitlement Offer Booklet will be available on the ASX website and https://www.elixinolglobal.com/site/investor/investor-centre-home from Tuesday, 12 May.

Under the Retail Entitlement Offer, Eligible Retail Shareholders who take up their entitlement in full may apply for Additional New Shares in excess of their entitlement (Oversubscription Facility). Additional New Shares will only be available under the Oversubscription Facility to the extent that there are entitlements under the Retail Entitlement Offer that are not taken up by Eligible Retail Shareholders, or entitlements that would have been offered to Ineligible Retail Shareholders had they been invited to participate. The allocation of Additional New Shares under the Oversubscription Facility will be subject to the terms set out in the Retail
Entitlement Offer booklet.

The Company expects ASX to lift the trading halt and for its ordinary shares to recommence trading on an ex-entitlements basis from market open today.

To learn more about Elixinol Gobal, visit the company HQ here.

Disclaimer: Past performance is not an indicator of future performance.

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Casey Peternell
Casey Peternell

Casey is a media and content creator with a keen eye for creativity. Casey is currently in the process of obtaining a double bachelors degree in Media & Communications and Business from Swinburne University in Melbourne.

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