Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Inc. Calls a Special Meeting of Shareholders
Approval Sought to Issue Shares in Satisfaction of Debt
Lincoln, England, (January 3rd, 2008) Dynex Power Inc. (“Dynex”)
announced today that it is calling a special meeting of shareholders to
be held at 10:00 am on January 30, 2008 in Toronto. Notices and meeting
materials will be sent to shareholders of record as of December 28, 2007.
Currently, DSL has long term indebtedness of £2,094,270 of which £1,820,000
was borrowed from Daniel Owen (£610,000) and David Banks (£1,210,000),
each of whom is a director of Dynex. Of that total, £863,762 is
convertible at the lender’s election into shares of DSL. It has been
proposed by Dynex, and Messrs. Owen and Banks have agreed, that the
convertible portion of these loans should henceforth be convertible into
shares of Dynex at a fixed exchange rate of Canadian $2.28 to £1
Sterling and at a conversion price of $0.1585 per share. This exchange
rate and conversion price were the rate and conversion price used to
calculate the conversion rate into DSL shares at the time the loans were
first made. This is the transaction for which shareholder approval will
be sought at the special meeting.
Mr Banks has elected to
convert £289,666.67 of his loans into 4,166,814 shares of Dynex as soon
as shareholders have approved the transaction and Mr Owen has elected to
convert £144,833.33 of his loans into 2,083,407 shares of Dynex as soon
as shareholders have approved the transaction. Shareholders are
therefore being asked to approve the immediate issuance of 6,250,221
common shares to satisfy these conversions. Following these conversions,
Mr Banks will own 24.85% of the outstanding common shares and Mr Owen
will own 17.22% of the outstanding common shares.
The TSX Venture
Exchange has provided conditional approval of this conversion and change
in conversion rights, the principal condition being the approval of the
Dynex shareholders.
Dr. Paul Taylor, President and Chief
Executive Officer said, “We are enthusiastic to submit this resolution
to our shareholders and very pleased that Daniel Owen and David Banks
agreed to it. We think the change in the basis of the conversion will
improve the marketability of our shares and the conversion will lower
our interest costs in the future.”
Further detail about
the proposed conversion and changes will be set out in the materials
sent to shareholders with the notice of special meeting.
About the Company
Dynex is one of the world’s leading independent suppliers of specialist,
high power semiconductor products. Dynex Semiconductor Ltd is its
operating business and is based in Lincoln, England in a facility
housing the fully integrated silicon wafer 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. The
company continues to produce and sell certain high reliability
integrated circuits (ICs) for use in specialist applications led by its
proven radiation hard Silicon-on-Sapphire products for space and nuclear
applications.
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: UK +44 1522 500
500
Email: investorrelations@dynexsemi.com
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