LXRandCo Announces Closing of $3.6 Million Financing and Renewal of $12.5 Million Revolving Bank Line

MONTREAL, May 26, 2020  /CNW/ - LXRandCo, Inc. ("LXRandCo" or the "Company") (TSX: LXR, LXR.WT), a North American omni-channel retailer of branded vintage luxury handbags and accessories, today reported that further to its announcement on May 13, 2020, the Company has completed a $3.6 million financing round of which $3.0 million, in the form of a three-year term loan, comes from the Business Capital Assistance Program COVID-19 relief program offered by the Federal Government (the "BCAP" financing) and $587,500 through a private placement (the "Equity Private Placement") of LXRandCo Class B shares (the "Shares"). As previously disclosed, the undertaking of a private placement of equity in an amount of at least $500,000 to be subscribed to predominantly by insiders was a requirement by the Company's lender as a condition precedent to receiving any BCAP financing. The Equity Private Placement consisted of the issuance of 3,357,143 Shares at a price of $0.175 per share. The Equity Private Placement subscribers included Gibraltar & Company, Inc., as lead investor, and four of the Company's directors, including the Company's Board Chair and the Interim Chief Executive Officer. Concurrent with the above, the Company also renewed its existing asset-backed lending facility, which was to mature in June 2020, for an amount of up to $12.5 million for a three-year term.

To fulfill the requirement under BCAP, 76.6% of the Shares issued as part of the Equity Private Placement were subscribed to by Company insiders. Two of the Company's directors, being directors of LXRandCo and related parties to Gibraltar & Company, Inc. and three other directors of the Company, being directors of LXRandCo, declared their respective interests to the board of directors of the Company in connection with the Equity Private Placement and did not vote on the resolution in respect of the Equity Private Placement.

The net proceeds of the Equity Private Placement will be used for general corporate and working capital purposes.

The Shares are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

About LXRandCo

LXRandCo is an international omni-channel retailer of branded vintage luxury handbags and other personal luxury products. LXRandCo sources and authenticates high-quality, pre-owned products from iconic brands such as Hermès, Louis Vuitton, Gucci and Chanel, among others, and sells them at attractive prices through: a retail network of stores located primarily in major department stores in the United States and Canada; wholesale operations primarily in the United States; and its own e-commerce website, www.lxrco.com.

Caution Regarding Forward-Looking Statements

Certain statements in this press release are prospective in nature and constitute forward-looking information and/or forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements generally, but not always, can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "could", "would", "will", "expect", "intend", "estimate", "forecasts", "project", "seek", "anticipate", "believes", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events and the negative of any of these terms. Forward-looking statements in this news release include, but are not limited to, statements regarding the Company's intended use of proceeds from the Private Placement, the expected closing date of the Private Placement, the expected benefits of the Private Placement on the Company's financial situation and the successful achievement of the Company's strategic plan or components thereof. Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management, which includes assumptions about management's historical experience, perception of trends and current business conditions, including results from the ongoing COVID-19 pandemic, expected future developments and other factors which management considers appropriate. With respect to the forward-looking statements included in this press release, management has made certain assumptions with respect to, among other things, the Company's ability to meet its future objectives and strategies, the Company's ability to achieve its future projects and plans and that such projects and plans will proceed as anticipated as well as assumptions concerning the satisfaction of all conditions of closing to the Private Placement, including receipt of all necessary regulatory and stock exchange approvals, and the successful completion of the Private Placement within the anticipated timeframe, general economic and market growth rates, currency exchange and interest rates and competitive intensity.

Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.

All forward-looking statements included in and incorporated into this press release are qualified by these cautionary statements. Unless otherwise indicated, the forward-looking statements contained herein are made as of the date of this press release, and except as required by applicable law, the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Readers are cautioned that the actual results achieved may vary from the information provided herein and that such variations may be material. Consequently, there are no representations by LXRandCo that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements.

SOURCE LXRandCo, Inc.

Nadine Eap, Interim Chief Financial Officer, LXRandCo, Inc., [phone] ext :037, [email protected]