Dynex Power Announces Late Filing of Accounts
Delay in filing Dynex Power Inc. Annual Financial Statements for 2015
Lincoln, England, May 1st, 2016 - Dynex Power Inc., a leading, high power semiconductor company, today announced that it has missed the deadline for filing its financial statements, related management’s discussion and Certificates of Filing (collectively, the “Annual Filings”) for the year ended December 31, 2015. Under the securities laws of the provinces in which Dynex is a reporting issuer, these materials were required to be filed by April 29, 2016.
The audit of its annual financial statements is not yet complete. The Company faced increased demands for information and documentation at a time when it was preparing to implement a new ERP system. There is also on-going discussion with its auditor on the valuation of certain assets. The Company has not been able to meet these documentation demands and finalise the discussions with its auditor on asset values in the time available. The Company is working diligently with its auditor to complete the audit. Based on its current expectations, Dynex anticipates that the Annual Filings will be filed by the middle of May 2016.
Pending the filing of the Annual Filings, the Company intends to satisfy the alternative information guidelines required by National Policy 12-203 and will issue a Default Status Report on a bi-weekly basis during the default period. These reports will disclose any material change in the information contained in this news release as well as any other information required by the above mentioned National Policy.
The Company intends to make an application to the Ontario Securities Commission (“OSC”) for a management cease trade order (“MCTO”), which would restrict all trading in securities of the Company, whether direct or indirect, by certain management of the Company. The MCTO would not affect the ability of shareholders who are not management of the Company to trade in shares of the Company. There is no certainty that the MCTO will be granted. If the MCTO is not issued by the OSC, the applicable Canadian securities regulatory authorities could issue a general cease trade order against the Company for failure to file the Annual Filings within the prescribed time period.
About the Company
Dynex designs and manufactures high power bipolar semiconductors, high power insulated gate bipolar transistor (IGBT) modules and high power electronic assemblies. 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. 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 CRRC Times Electric Co., Ltd.
Zhuzhou CRRC 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. CRRC 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, CRRC 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.
Information about Dynex Semiconductor Ltd and its products can be found atwww.dynexsemi.com
Further information on CRRC Times Electric can be found at www.timeselectric.cn/en
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Cautionary Statement on Forward-Looking Information
This news release contains certain "forward-looking information" as such term is defined under applicable Canadian securities laws. All disclosure herein, other than information regarding historical fact, regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions or courses of action is forward-looking information. Statements about the anticipated timing of the release of the Annual Filings or the Company’s intention or ability to apply for and obtain an MCTO are forward-looking statements. All forward-looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations. The completion of the Company’s audit may take longer than currently anticipated and the OSC may not issue an MCTO pursuant to the Company’s application. Except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information.