Xebec Announces Closing of $28 Million Upsized Bought Deal Financing and Concurrent Block Trade

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MONTREAL, June 26, 2020 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. ("Xebec" or the "Corporation") (TSXV:XBC) is pleased to announce that it has closed its previously announced upsized bought deal offering of 7,986,750 Common Shares from treasury (the “Common Shares”), which includes the full exercise of the Over-Allotment Option, at a price of $3.60 per Common Share (the “Offering Price”) for aggregate gross proceeds of $28,752,300 (the "Offering").

The Offering was conducted by a syndicate of underwriters led by Desjardins Capital Markets and which included TD Securities Inc., Canaccord Genuity Corp., Raymond James Ltd., Beacon Securities Limited, and Stifel GMP (together, the "Underwriters").

The Corporation intends to use the net proceeds from the Offering to develop and invest in new renewable gas projects, to pursue strategic growth initiatives and for general corporate purposes.

In connection with the Offering, the Corporation paid the Underwriters a cash commission equal to 6% of the gross proceeds of the Offering, and compensation options (the "Compensation Options") equal to 6% of the Common Shares issued pursuant to the Offering. Each Compensation Option will entitle the Underwriters to purchase a Common Share at an exercise price of $3.60 for a period of 12 months from the closing date of the Offering.

The Common Shares were offered by way of short form prospectus in all of the provinces of Canada.

In a separate transaction that was completed concurrently with the Offering, Mr. Kurt Sorschak, Chairman, President and CEO, Mr. Louis Dufour, CFO and Dr. Prabhu K. Rao, COO and Director (collectively, the “Selling Shareholders”) sold to the Underwriters for resale an aggregate of 2,500,000 common shares of the Corporation, on a block trade, prospectus-exempt basis, at the Offering Price for total gross proceeds of $9,000,000 to the Selling Shareholders (the “Concurrent Block Trade”). The Selling Shareholders have entered into lock-up agreements for a period of 90 days from the date of closing prohibiting their disposition of securities of the Corporation, subject to certain exceptions. The Corporation did not receive any proceeds from the sale of the Common Shares associated with the Concurrent Block Trade.