Ms. Sandi Murphy reports

XEBEC ANNOUNCES $20 MILLION BOUGHT DEAL PUBLIC OFFERING OF COMMON SHARES

Xebec Adsorption Inc. has entered into an agreement with a syndicate of underwriters led by Desjardins Capital Markets, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 9,524,000 common shares at a price of $2.10 per common share for aggregate gross proceeds to Xebec of $20,000,400.

The corporation has granted the underwriters an option, exercisable, in whole or in part, at any time until, and including, 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the offering at the offering price to cover overallotments, if any. If the overallotment option is exercised in full, the total gross proceeds of the offering will be $23,000,460.

The common shares will be offered by way of short form prospectus to be filed in each of the provinces of Canada and in the United States by way of private placement, pursuant to the exemption from registration provided for under Rule 144A of the United States Securities Act of 1933, as amended, and in such other jurisdictions outside of Canada and the United States as are agreed to by the corporation and the underwriters, in each case provided that no prospectus, registration statement or other similar document is required to be filed in such jurisdiction and that the corporation will not be or become subject to any continuous disclosure obligations in such jurisdiction.

The corporation intends to use the net proceeds from the offering: to develop and invest in new renewable gas projects; to pursue strategic growth initiatives; and for general corporate purposes.

The offering is expected to close on or about Dec. 27, 2019, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

About Xebec Adsorption Inc.

Xebec Adsorption is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace.

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