Dynex Power Announces Large Order
Lincoln, England, May 8th, 2008 - Dynex Power Inc., a leading, independent high power semiconductor company, today announced that it has received a series of new orders from a major European industrial group for the supply of a range of bipolar parts for delivery in 2008 and 2009. Firm orders for Euros 4.4 million have been received already this year and the Company expects the total order value to be in excess of Euros 6.5 million. The customer has indicated that it expects to have a continuing requirement for similar bipolar parts after 2009. These orders come at a time when the forward order book for the Company is already at record levels.
The Company also announced that it had agreed a £750,000 unsecured subordinated loan facility from two of its directors, Mr. Daniel Owen and Mr. David Banks. There are no fees arising from the arrangement of this facility. Interest on any amounts drawn will be at 8.5% and any drawings are repayable at any time without penalty.
Dr. Paul Taylor, President and Chief Executive Officer commented, “in response to the growing demand for our products, we were already planning for significant capital expenditure over the next few years in order to increase our capacity and extend our capability. The receipt of these orders means we now have to accelerate £800,000 of that investment. The equipment required has already been identified and orders are in the process of being placed”.
Mr. Bob Lockwood, Chief Financial Officer said “we have already started the process of looking at financing arrangements for our capital expenditure plans and we will continue with that work. But the provision of this facility by two of our directors does mean that we can accelerate this part of our investment and order the equipment straight away”.
The Chairman, Mr David Banks, indicated that this order, and the relationship being developed with the customer, was good for Dynex irrespective of whether the Company remained independent or not. Mr Banks then took the opportunity to provide the following update on the progress of the strategic transaction under the non-binding letter of intent with the Zhuzhou CSR Times Electric Company announced on March 31, 2008. “Whilst there is still no assurance that the transaction will be completed, the due diligence is currently being conducted and the preparation of the definitive documentation is progressing on schedule. ”