LXRandCo Announces Closing of $3.6 Million Financing and Renewal of $12.5 Million Revolving Bank Line

LXRandCo, Inc. ("LXRandCo" or the "Company") (TSX: LXR, LXR.WT), a North American omni-channel retailer of branded vintage luxury handbags and accessories, today reported that further to its announcement on May 13, 2020, the Company has completed a $3.6 million financing round of which $3.0 million, in the form of a three-year term loan, comes from the Business Capital Assistance Program COVID-19 relief program offered by the Federal Government (the "BCAP" financing) and $587,500 through a private placement (the "Equity Private Placement") of LXRandCo Class B shares (the "Shares"). As previously disclosed, the undertaking of a private placement of equity in an amount of at least $500,000 to be subscribed to predominantly by insiders was a requirement by the Company's lender as a condition precedent to receiving any BCAP financing. The Equity Private Placement consisted of the issuance of 3,357,143 Shares at a price of $0.175 per share. The Equity Private Placement subscribers included Gibraltar & Company, Inc., as lead investor, and four of the Company's directors, including the Company's Board Chair and the Interim Chief Executive Officer. Concurrent with the above, the Company also renewed its existing asset-backed lending facility, which was to mature in June 2020, for an amount of up to $12.5 million for a three-year term.

To fulfill the requirement under BCAP, 76.6% of the Shares issued as part of the Equity Private Placement were subscribed to by Company insiders. Two of the Company's directors, being directors of LXRandCo and related parties to Gibraltar & Company, Inc. and three other directors of the Company, being directors of LXRandCo, declared their respective interests to the board of directors of the Company in connection with the Equity Private Placement and did not vote on the resolution in respect of the Equity Private Placement.

The net proceeds of the Equity Private Placement will be used for general corporate and working capital purposes.

The Shares are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

About LXRandCo

LXRandCo is an international omni-channel retailer of branded vintage luxury handbags and other personal luxury products. LXRandCo sources and authenticates high-quality, pre-owned products from iconic brands such as Hermès, Louis Vuitton, Gucci and Chanel, among others, and sells them at attractive prices through: a retail network of stores located primarily in major department stores in the United States and Canada; wholesale operations primarily in the United States; and its own e-commerce website, www.lxrco.com.