Listing: TSX Venture Exchange
Approval Sought to Issue Shares in Satisfaction of Debt
LINCOLN, England, Jan. 3 /CNW Telbec/ - 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 (pnds stlg)2,094,270 of
which (pnds stlg)1,820,000 was borrowed from Daniel Owen ((pnds stlg)610,000)
and David Banks ((pnds stlg)1,210,000), each of whom is a director of Dynex.
Of that total, (pnds stlg)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
(pnds stlg)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 (pnds stlg)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 (pnds stlg)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.
The TSX-Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Press announcements and other information about Dynex are available on
the World Wide Web at http://www.dynexsemi.com.
For further information:
For further information: Dr. Paul Taylor, President and Chief Executive
Officer; Bob Lockwood, Finance Director and Chief Financial Officer, Dynex
Power Inc., +44 1522 500 500, firstname.lastname@example.org