Listing: TSX Venture Exchange
Symbol: DNX
Dynex Announces New Loan Financing
Provides Additional Working Capital
Lincoln, England, March 30th , 2005 -- Dynex Power Inc., a leading
independent power semiconductor company, today announced that it has
completed arrangements for a new £700,000 ($1,665,300) term loan that
has been made available to its UK subsidiary, Dynex Semiconductor Ltd.,
by certain Directors of the Company. The loan is being used for general
corporate purposes.
Dynex announced last December that it had
accepted an offer from the asset-based lending arm of an international
bank to provide a new £2.5 million facility that would replace its
existing facility and provide an additional £600,000 of funding. Dynex
concluded that additional restrictions being imposed by the new lender
and increasing costs associated with the new facility made it less
attractive than it had first appeared and a decision was taken not to
complete the facility.
The Chairman, Mr David Banks, and
another Director, Mr Daniel Owen, provided the new facility which is a
three-year term loan with repayments being spread over the third year of
the agreement. Outstanding interest and principal are subordinated to
the primary lender and the loan accrues interest at 7.0% p.a. At the
option of the lender all or part of the loan may be converted into
shares of Dynex Semiconductor Ltd. The full amount of the loan could be
converted into approximately 15% of the shares of Dynex Semiconductor
Ltd. Other large shareholders are being invited to participate in the
loan, on the same terms.
Dr. Paul Taylor, President and Chief
Executive Officer, commented, “The positive support from our Directors
is excellent news. Ending discussions with what we thought would be our
new lender was not easy. The delay in drawing the proceeds had made our
liquidity position very tight, which interfered with the efficient
operation of our business. The willingness of our Directors to back our
recovery plan enabled us to end those negotiations without further
damage to the business. It is a tremendous vote of confidence by them in
the business and the employees. In conjunction with the previously
announced restructuring and cost saving actions, these additional
financial resources will enable us return the business to profitability
on a stand-alone basis in the near future. We may require additional
funds in the future, but this new loan certainly permits us to improve
our terms of trade in the meantime.”
About the Company
Dynex is one of the world’s leading suppliers of specialist high power
semiconductor products, and is based in Lincoln, England in a facility
housing the fully integrated silicon fabrication, assembly and test,
sales, design and development operations. Dynex designs and manufactures
high power bipolar discrete semiconductors, power modules, including
insulated-gate bipolar transistors (IGBTs), and high power electronic
assemblies. Dynex products are used world wide in power electronic
applications including electric power generation, transmission and
distribution, marine and rail traction drives, aircraft, electric
vehicles, industrial automation and controls.
Press
announcements and other information about Dynex are available on the
World Wide Web at http://www.dynexsemi.com.
All monetary
values expressed in this release are in Canadian dollars unless stated
otherwise.
The TSX Venture Exchange has neither approved nor
disapproved of the information in this press release.
For
more information:
Dr Paul Taylor
President and Chief Executive Officer
or
Bob
Lockwood
Finance Director and Chief Financial Officer
Dynex
Power Inc.
Tel: +44 1522 500 500
Email: paul_taylor@dynexsemi.com
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