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XLM XL ID Solutions

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Share Name Share Symbol Market Type
XL ID Solutions TSXV:XLM TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Excellium Inc. Completes Secured Loan Transaction

20/02/2013 5:58pm

Marketwired Canada


Excellium Inc. (TSX VENTURE:XLM) (the "Corporation" or "Excellium"), a Tier II
issuer listed on the TSX Venture Exchange (the "Exchange"), announces that it
has completed a secured loan transaction with General Financial Corporation Ltd.
("GFC"), Excellium's controlling shareholder, and Westminster Care and
Maintenance Trust Fund ("Westminster"), an arm's length lender. Under the terms
of the arrangement, Westminster has made available a secured loan facility of up
to $1,000,000 to GFC (the "GFC Loan"), and GFC has agreed to use such funds
solely for the purpose of providing a secured loan to Excellium (the "Excellium
Loan") to finance its operations. 


Under the terms of the Excellium Loan, which mirror the principal terms of the
GFC Loan, GFC will lend to the Corporation an aggregate amount of up to
$1,000,000, disbursable in two equal tranches of $500,000. The first $500,000
tranche was drawn by Excellium at closing, and a second tranche of $500,000 will
be available to Excellium subject to certain conditions. The interest rate on
any outstanding principal amount under the Excellium Loan is 12% per annum,
calculated monthly, payable in arrears commencing March 31, 2013 and thereafter
on the last day of each quarter until such time as the principal has been paid
in full. The principal amount of the initial tranche of the Excellium Loan is
due and payable in full on the 5th anniversary of its disbursement date.
Excellium will pay any amount owing to GFC under the Excellium Loan directly to
Westminster as payment of the amounts owing by GFC to Westminster under the GFC
Loan. A hypothec has been granted by the Corporation in favour of GFC covering
the Corporation's present and future movable and immovable property in order to
secure the Corporation's obligations under the Excellium Loan. In addition,
Excellium has agreed to guarantee the obligations of GFC under the GFC Loan. The
proceeds of the Excellium Loan will be used by the Corporation to finance its
operations


As additional consideration payable to Westminster in connection with these loan
arrangements, the Corporation has issued a non-transferable common share
purchase warrant (the "Warrant") to Westminster. The Warrant is exercisable for
up to five hundred thousand (500,000) common shares of the Corporation (the
"Warrant Shares") at an exercise price of $0.15 per share, which represents a
premium of $0.05 on the closing price of the Corporation's common shares on the
Exchange on February 19, 2012. The Warrant is exercisable immediately and
expires two (2) years after its date of issuance, and will not be listed. 


Excellium is a security company specialized in biometrics identity systems and
proactive security management and in the integration of security products for
the institutional and industrial markets. Excellium is active in two distinct
but complementary lines of business: electronic security, which includes
security management, access control and video surveillance, and electronic
identification, comprising background checks and biometric identification.
Excellium's common shares are listed on the TSX Venture under the trading symbol
"XLM" and its continuous disclosure filings are available on SEDAR at
www.sedar.com. For further information about Excellium, please visit its website
at www.excellium.ca.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Excellium Inc.
Jean-Claude Siew
President and CEO
(514) 798-8899

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