TORONTO, May 14, 2020 /CNW/ - Baylin Technologies Inc. (TSX: BYL and BYL.DB) today announced that it has mailed the following notice to the holders of its convertible debentures.
To: Holders of $17,250,000 6.5% Extendible Convertible Unsecured Debentures due July 23, 2023 of Baylin Technologies Inc.
Subject: Payment of Interest in Common Shares
We, Baylin Technologies Inc., are offering holders of our 6.5% Extendible Convertible Unsecured Debentures (the "Debentures") an option to elect to receive our common shares in payment of interest due on the Debentures on the interest payment date on June 30, 2020 as an alternative to cash interest.
In response to the economic and business challenges brought on by the Covid-19 pandemic, we recently announced we are undergoing a comprehensive assessment of our operations and costs to ensure we remain competitive. We have implemented a cost savings plan to reduce expenses by postponing or cancelling discretionary expenditures, reducing travel costs, freezing all non-essential hiring, deferring a portion of executives' salaries and temporary layoffs of a number of employees.
This option, which is entirely voluntary, is an additional step as part of that plan. It will allow us to use the cash otherwise payable as interest to strengthen our financial position. Holders who exercise the option will receive common shares at 85% of their current market price on the June 30 interest payment date; however, the shares will be subject to a restriction on resale for a period of four months after that date.
Holders who do nothing will receive their regular interest payment in cash on June 30, 2020.
If you would like to consider this option, please contact our Corporate Secretary at [email protected] by May 30, 2020 for more information about how to elect this option. In order to elect this option, you must sign an agreement with us and instruct your broker or dealer (through which you hold your Debentures) to make the election on your behalf by contacting CDS (CDS Clearing and Depository Services Inc.). The option will be exercisable through CDS during the period beginning on June 17 and ending on June 23, 2020. The agreement is available from the Corporate Secretary.
Baylin Technologies Inc. is a leading, diversified, global wireless technology company. Baylin focuses on research, design, development, manufacturing and sales of passive and active radio frequency products and services. Baylin aspires to meet its customers' needs and anticipate the direction of the market. For further information, please visit www.baylintech.com or contact Investor Relations: [email protected].
SOURCE Baylin Technologies Inc.
For further information: Investor Relations: Kelly Myles, Marketing and Communications Director, Baylin Technologies Inc., [email protected]