Dynex Announces New Loan Agreement
Dynex Semiconductor Ltd., has arranged a new term loan for £120,000 ($243,100)
Lincoln, England, January 3rd, 2006 -- Dynex Power Inc., a leading, independent power semiconductor company, today announced that its UK subsidiary, Dynex Semiconductor Ltd., has arranged a new term loan for £120,000 ($243,100). The loan is being advanced by certain Directors of the Company and will be used for general corporate purposes.
The Chairman of the Company, Mr David Banks, and another Director of the Company, Mr Daniel Owen, have provided the new facility which is a term loan and which is repayable in equal monthly instalments between April and September 2008. At the option of the lenders all or part of the loan may be converted into shares of Dynex Semiconductor Ltd. If the full amount of the loan were converted, Mr Banks and Mr Owen would be issued 371,000 shares in Dynex Semiconductor Ltd., equivalent to approximately 9.01% of its issued share capital after the conversion. The loan is the third convertible loan made by Mr Banks and Mr Owen to Dynex Semiconductor Ltd. If the lenders were to exercise all of their conversion rights, then £863,762 ($1,749,100) of loans would be converted into 1,866,159 shares in Dynex Semiconductor Ltd., equivalent to approximately 33.23% of its issued share capital after the conversions. In all three loans, Mr Banks and Mr Owen have participated equally but any decision to convert the loans into shares in Dynex Semiconductor Ltd. may be taken independently. In line with the practice they have established with previous loans to the Company, the lenders are offering participations in the new loan to other lenders and major shareholders.
Dr. Paul Taylor, President and Chief Executive Officer, commented, “I am pleased by the continuing improvement in performance in line with the business plan established at the start of 2005. The additional financing provided by two of our Directors evidences their confidence in our continued performance improvement and provides additional funding for our working capital as our revenue continues to grow”.
For more information:
Dr. Paul Taylor
President and Chief Executive Officer
Chief Financial Officer
Dynex Power Inc.
Tel: UK +44 1522 500500