- Loan strengthens Xebec’s financial position to deliver on new opportunities -
MONTREAL, (QC), May 6th, 2020 – Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions is pleased to announce that it has entered into a loan agreement (the “Agreement”) with the Fonds de solidarité FTQ (the “Fonds”), for an unsecured loan facility of $10 million.
The loan facility has a term of 5 years and will be used for working capital, investments, acquisitions and general corporate purposes. It will allow Xebec to continue its rapid scale-up through organic and inorganic growth and allow investments in renewable gas infrastructure projects.
As part of the Agreement, the Fonds has been granted 3,000,000 warrants exercisable for a period of two years from the date of closing. Each warrant will allow the Fonds to purchase one common share of Xebec at an exercise price of $4.58, representing a 40% premium to the 20-day volume weighted average price (“VWAP”) as at closing of markets on May 4, 2020.
Quotes:
“We are pleased to offer Xebec this loan after following the company’s developments closely for more than a year. I am impressed with the results they have achieved. This loan will help them continue their mission of decarbonizing the gas grid. I believe that we are in the early stages of the renewable gas transition and Xebec will be a key player in the industry. This is a positive first step in building our relationship with the company and we look forward to the years ahead.”
– Dany Pelletier, Vice President – Structuring Capital, Energy and Environment, Fonds de solidarité FTQ
"We’re excited to have been able to arrange this loan facility with the Fonds de solidarité FTQ which significantly strengthens our financial position during these uncertain economic times. This unsecured facility will contribute to the execution of our growth strategies even while allowing us to pursue additional opportunities as they arise. The support from the Fonds is very important to Xebec, and I personally take it as a vote of confidence in Xebec’s potential as a global clean energy solutions provider."
– Kurt Sorschak, President and CEO, Xebec Adsorption Inc.
The loan remains subject to the final approval of the TSX Venture Exchange.
Desjardins Capital Markets acted as financial advisors to Xebec.
Related links:
https://www.xebecinc.com