Elixxer Ltd V.ELXR

RE:RE:RE:RE:RE:RE:ELXR ANNOUNCES AMENDMENT TO PROPOSED DEBT SETTLEMENT

[miniminx]

Trouble is the assets will be spread around an extra billion shares, mostly owned by AIP and Arlington. The debt will reduce but so will the value of each share. And history shows that even when Elixxer had plenty of cash in the bank, they still borrowed plenty - which is how they got into this mess. Only on rare occasions have they actually paid cash for their investments so their running costs must have been astronomical.

And while their LGP stake is obviously worth something despite them selling off chunks at lower prices to keep the lights on, and they may get their money back from Tricho-Med, precious little is known about the value of their other investments, some of which obviously continue to be liabilities and thus reduce the overall net asset value.

Furthermore, since they appear to have little or no cash left (again - where does it all go?), they will need another hefty fundraising deal if and when the AIP/Arlington debt-for-equity deal goes through, just to give them enough working capital to keep the lights on. And loads more cash if they plan to make any new investments.

At least the cannabis industry is in a slightly better place than it was a year or two ago so there's a chance that they might be able to sell some of their under-performing investments - albeit no-one has made them any serious offer yet or they would have been forced to announce it.

Sadly, there is also a distinct possibility that Elixxer will go into liquidation before the AIP/Arlington deal is approved.