$AXXA Huge News : Exxe Group to Reduce Debt, Adju
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Posted On: 04/04/2022 8:21:39 AM
$AXXA Huge News : Exxe Group to Reduce Debt, Adjust Future Share Count, Enhancing Shareholder Value
Exxe is strengthening its balance sheet by reducing aged debt and potential share count,
Estimated up to $20M of early 2022 maturity liabilities to be reduced, eliminated, converted,
Exxe's equity set to increase via debt reduction and favorable balance sheet amendments,
Capital structure changes include limited stock issuance for the quarter ending June 30, 2022
Exxe seeks to capitalize on greater investment opportunities via an improved balance sheet
NEW YORK, NY / ACCESSWIRE / March 9, 2022 / Exxe Group, Inc. (OTC PINK:AXXA), ("Exxe" or the "Company"
diversified private equity, real estate, and fintech company is pleased to announce that it is in the process of strengthening its balance sheet by reducing, eliminating, or adjusting aged debt, thereby increasing equity and shareholder value, along with lessening potential future share count.
Management has identified up to $20 million of aged debt carrying the first half of 2022 maturities that shall be amended via conversion into restricted preferred equity, or into debt with maturities to extend additional 36 months. In conjunction with the balance sheet enhancements, Exxe plans to limit stock issuances during June 2022 quarter. These steps are designed to serve as a positive for the Company and its investors. First, debt reduction and simultaneous equity conversion should translate into a greater equity value and reduced liabilities. Second, completing a limited stock issuance in one transaction should reduce potential multiple additions to the share count and increase confidence in the overall business model.
As with the debt settlement, Exxe Group's objective is to eliminate up to $4M of accrued interest and long-term debt. Up to $8M or nearly 10% of total outstanding debt is planned to be converted to restricted preferred equity while only a limited issuance is planned in the June 2022 draft period representing less than 1% of total debts. This event will reduce potential, future share overhangs versus the completion of multiple transactions during the period. Exxe believes that this restructuring of debt will put Exxe in a stronger capital structure, potentially opening up greater private equity and real estate acquisition opportunities.
Exxe businesses that are targeted for debt recapitalizations or asset reallocations include Hemp and Agribusiness provider Flying Creek division(FCD), energy products provider Lucent Led Tech(LLT), AXXA Digital Communities(ADC), as well as AXXA Autoparts, M MOTO division(AMD). In the coming weeks, management will finalize specific changes for these businesses and possibly other Exxe related divisions. These changes include varying percentages of debt reduction and the remainder converting into restricted preferred equity. The remaining current debt portion terms shall be lengthened into future maturity dates.
https://finance.yahoo.com/news/exxe-group-red...00442.html
Exxe is strengthening its balance sheet by reducing aged debt and potential share count,
Estimated up to $20M of early 2022 maturity liabilities to be reduced, eliminated, converted,
Exxe's equity set to increase via debt reduction and favorable balance sheet amendments,
Capital structure changes include limited stock issuance for the quarter ending June 30, 2022
Exxe seeks to capitalize on greater investment opportunities via an improved balance sheet
NEW YORK, NY / ACCESSWIRE / March 9, 2022 / Exxe Group, Inc. (OTC PINK:AXXA), ("Exxe" or the "Company"
diversified private equity, real estate, and fintech company is pleased to announce that it is in the process of strengthening its balance sheet by reducing, eliminating, or adjusting aged debt, thereby increasing equity and shareholder value, along with lessening potential future share count. Management has identified up to $20 million of aged debt carrying the first half of 2022 maturities that shall be amended via conversion into restricted preferred equity, or into debt with maturities to extend additional 36 months. In conjunction with the balance sheet enhancements, Exxe plans to limit stock issuances during June 2022 quarter. These steps are designed to serve as a positive for the Company and its investors. First, debt reduction and simultaneous equity conversion should translate into a greater equity value and reduced liabilities. Second, completing a limited stock issuance in one transaction should reduce potential multiple additions to the share count and increase confidence in the overall business model.
As with the debt settlement, Exxe Group's objective is to eliminate up to $4M of accrued interest and long-term debt. Up to $8M or nearly 10% of total outstanding debt is planned to be converted to restricted preferred equity while only a limited issuance is planned in the June 2022 draft period representing less than 1% of total debts. This event will reduce potential, future share overhangs versus the completion of multiple transactions during the period. Exxe believes that this restructuring of debt will put Exxe in a stronger capital structure, potentially opening up greater private equity and real estate acquisition opportunities.
Exxe businesses that are targeted for debt recapitalizations or asset reallocations include Hemp and Agribusiness provider Flying Creek division(FCD), energy products provider Lucent Led Tech(LLT), AXXA Digital Communities(ADC), as well as AXXA Autoparts, M MOTO division(AMD). In the coming weeks, management will finalize specific changes for these businesses and possibly other Exxe related divisions. These changes include varying percentages of debt reduction and the remainder converting into restricted preferred equity. The remaining current debt portion terms shall be lengthened into future maturity dates.
https://finance.yahoo.com/news/exxe-group-red...00442.html
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