/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

MONTREAL, Dec. 7, 2020 /CNW/ - LXRandCo, Inc. ("LXR" or the "Company") (TSX: LXR) (TSX: LXR.WT), an omni-channel retailer of branded vintage luxury handbags and accessories, is pleased to announce a brokered private placement led by Cormark Securities Inc. ("Cormark"), acting as agent (the "Private Placement"), of a minimum of $5.0 million or 40,000,000 units, with each unit consisting of one Class B Share (the "Share(s)") and a one-quarter of one Class B Share purchase warrant (the "Warrant") (the "Units"), in the capital of the Company at a price of $0.125 per Unit. Each whole Warrant will entitle the holder to purchase one additional Share at a price of $0.175 for a period of 24 months following the closing of the Private Placement. The Warrants are subject to an accelerated expiry if, following the date that is four months and one day after the date of issuance of the Units and prior to the expiry date of the Warrants, the daily volume weighted average trading price of the Shares exceeds $0.35 for ten consecutive trading days. The Company has also granted Cormark an option to arrange the purchase of up to an additional 20 million Units under this offering at the issue price.

The net proceeds of the Private Placement shall be used to fund the execution of LXR's transformation to a digital-first omni-channel model as announced on September 3, 2020, whereby its strategic priorities include: accelerating the growth of the Company's digital presence through its LXRCO.com site, leveraging growth through third-party e-commerce platforms, and enabling the expansion of e-commerce opportunities of its retail channel partners. The proceeds of the offering shall be used by the Company to accelerate the growth of its e-commerce initiatives, which include expansion of the e-commerce team and increased digital marketing spend, and for general working capital purposes.

In 2019, LXR's e-commerce revenue was $3.7 million (2018—$2.4 million). Since the release of the Company's third quarter results on November 13, 2020, the Company's e-commerce activities in the fourth quarter have experienced significant growth. For the two-month period ended November 30, 2020, the Company's total e-commerce revenues were approximately $0.9 million or 45% higher than for the similar period in 2019. This included approximately $0.6 million in revenue from the Company's LXRCO.com site which was 57% higher than that for the similar period in 2019 and approximately $0.3 million in revenue from other e-commerce partner initiatives. In the first two months of the fourth quarter, LXRCO.com site revenue represented 63% of total e-commerce activities. In addition, e-commerce average order value during the first two months of the fourth quarter was $1,032 per transaction, an increase of 30% as compared to the prior period.

Closing of the Private Placement is subject to receipt of all necessary corporate and regulatory approvals, including the approval of the Toronto Stock Exchange and is anticipated to occur on or about December 22, 2020.

Gibraltar & Company, Inc. and its affiliates (collectively, "Gibraltar") currently beneficially own, or control or direct, directly or indirectly approximately 10.8 million Shares, representing 33.1% of the Shares as of the date hereof. As a part of the Private Placement, Gibraltar has committed $1.0 million and certain insiders of Gibraltar and certain directors of LXR collectively, have committed an additional $1.4 million. Upon completion of the Private Placement, Gibraltar would beneficially own, or control or direct, directly or indirectly 18.8 million Shares (before exercise of the Warrants), representing 25.9% of the issued and outstanding Shares of the Company, or 20.8 million Shares, representing 25.2% of the issued and outstanding Shares of the Company on a fully-diluted basis.

The securities issued in connection with the Private Placement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. The Warrants will not be listed on any exchange.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.

About LXR

LXR is a socially responsible, digital-first omni-channel retailer of branded vintage luxury handbags and other personal accessories. It curates, sources and authenticates high-quality, pre-owned products from iconic brands such as Hermès, Louis Vuitton, Gucci, Prada and Chanel and sells them at attractive prices through its e-commerce website, www.lxrco.com, as well as the online platforms of its partners and online vintage-focused marketplaces across North America. The Company's omni-channel model is also supported by retail 'shop-in-shop' experience centers and by wholesale activities.

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, 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.

Copyright 2020 Canada NewsWire

LXRandCo (TSX:LXR)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more LXRandCo Charts.
LXRandCo (TSX:LXR)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more LXRandCo Charts.