Listing: TSX Venture Exchange
Symbol: DNX
Lincoln, England, October 26th, 2009 – Dynex Power Inc., a
leading specialist high power semiconductor company, announced today
that it has filed a preliminary prospectus with the securities
commissions in the provinces of British Columbia, Alberta and Ontario
relating to a rights offering.
The Corporation’s subsidiary,
Dynex Semiconductor Limited, is in the process of replacing and
expanding its fabrication facility for silicon chips to be used in IGBT
modules. The existing line, which processes 4-inch diameter silicon, is
being replaced by two 6-inch lines. The installation of the two new
lines will increase capacity approximately tenfold and is expected to
require £11 million in capital expenditure, based on estimates received
from suppliers, and an increase of approximately £1.5 million of working
capital.
In order to start the expansion, a short term facility
of £7.3 million was arranged with ICBC (London) Ltd, and was guaranteed
by Zhuzhou CSR Times Electric. The net proceeds of the rights offering
will be used by Dynex to repay the ICBC loan and to complete the
expansion project.
Under the terms of the rights offering,
shareholders of record will receive rights to subscribe for common
shares in the capital of Dynex. Holders of rights that fully exercise
their rights will be entitled to subscribe for additional common shares,
if available, that were not otherwise subscribed for in the rights
offering.
Zhuzhou CSR Times Electric, the majority shareholder of
the Corporation, has indicated that it will subscribe for 75% of all
common shares subscribed for as part of the rights offering.
The
number of common shares to be issued, the number of rights required to
purchase one common share, the subscription price per common share, the
record date and the expiry date of the rights offering will be
determined at the time of filing the final prospectus.
Further
details concerning the rights offering are contained in the preliminary
prospectus, which has been filed on SEDAR at www.sedar.com.
The
rights offering is subject to regulatory approval, including that of the
TSX Venture Exchange.
This press release is not an offer to sell
or the solicitation of an offer to buy securities in any jurisdiction.
The rights and common shares issuable on exercise of the rights have not
been and will not be registered under the United States Securities Act
of 1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements.
About the Company
Dynex designs
and manufactures high power bipolar semiconductors, high power insulated
gate bipolar transistor (IGBT) modules, high power electronic assemblies
and radiation hard silicon-on-sapphire integrated circuits (SOS IC’s).
The company’s power products are used worldwide in power electronic
applications including electric power transmission and distribution,
renewable and distributed energy, marine and rail traction motor drives,
aerospace, electric vehicles, industrial automation and controls and
power supplies. Its IC products are used in demanding applications in
the aerospace industry. Dynex Semiconductor Ltd is its only operating
business and is based in Lincoln, England in a facility housing the
fully integrated silicon fabrication, assembly and test, sales, design
and development operations. Dynex is majority owned by Zhuzhou CSR Times
Electric Co., Ltd.
Zhuzhou CSR Times Electric Co., Ltd. is based
in Hunan Province in the People's Republic of China. It is listed on the
Hong Kong stock exchange. CSR Times Electric is mainly engaged in the
research, development, manufacture and sales of locomotive train power
converters, control systems and other train-borne electrical systems, as
well as the development, manufacturing and sales of urban railway train
electrical systems. In addition, CSR Times Electric is also engaged in
the design, manufacturing and sales of electric components including
power semiconductor devices for the railway industry, urban railway
industry and non-railway purposes.
Press announcements and
other information about Dynex are available at www.dynexsemi.com.
Further
information on CSR Times Electric can be found at www.timeselectric.cn/en
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
| Copyright © 2010 Dynex Semiconductor Copyright © 1995-2010 I-Next Ltd |
We welcome your comments about this service, please send them to: power_solutions@dynexsemi.com |