TORONTO, ONTARIO--(Marketwired - Sept. 16, 2013) - Xylitol Canada Inc. ("Xylitol Canada", or the "Company") (TSX VENTURE:XYL) is pleased to announce today that it has completed a $3 million debt financing (the "Loan") with Dundee Agricultural Corporation ("Dundee"). The Loan accrues interest at a rate of 1.0% per month. Subject to the approval of the TSX Venture Exchange (the "Exchange") and any shareholder approval which may be required by the Exchange, the principal amount of the Loan outstanding from time to time or any portion thereof may, at the option of Dundee, be converted into common shares of the Company at the price of $0.24 per common share. Upon conversion of the principal amount of the Loan, any accrued and unpaid interest up to but excluding the date of conversion will be paid in cash, or at the option of Dundee, and subject to the approval of the Exchange, in common shares at a price per share equal to the greater of: (a) the last closing price of the common shares on the Exchange on the date of conversion, and (b) $0.10 per share.
The net proceeds from the Loan will be used for purchasing inventory, product development, research and development, and for working capital purposes.
"Major food manufacturers are looking at ways to incorporate natural sweeteners into their products due to the demands of health conscious consumers, and the natural sweetener market is as a result expanding more rapidly than all other sweetener markets. Having the support of Dundee as we press forward with our commercialization efforts is beneficial to the Company and our plans for the future," stated Andrew Reid, CEO of Xylitol Canada. "We thank Dundee for their support."
About Xylitol Canada Inc.
Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America.
Xylitol Canada's business strategy is to leverage novel proprietary technology and processes to become North America's premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is an all-natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.