Listing: TSX Venture Exchange
LINCOLN, England, Nov. 24 /CNW/ - Dynex Power Inc., a leading specialist high power semiconductor company, announced today that it has filed a final prospectus with the securities commissions in the provinces of British Columbia, Alberta and Ontario relating to a rights offering.
The Corporation is issuing 40,195,714 rights to existing shareholders. Each right entitles the holder to subscribe for one common share at a price of $0.56. Rights will be issued to registered shareholders as at the record date, which has been set as December 2nd, 2009. Rights will expire at 5:00pm (Eastern Standard Time) on December 30th, 2009. Rights not exercised by that time will be void and have no value.
As previously announced, the Corporation's subsidiary, Dynex Semiconductor Limited, is in the process of replacing and expanding its fabrication facility for silicon chips to be used in IGBT modules. The existing line, which processes 4-inch diameter silicon, is being replaced by two 6-inch lines. The installation of the two new lines will increase capacity approximately tenfold and is expected to require (pnds stlg)11 million in capital expenditure, based on estimates received from suppliers, and an increase of approximately (pnds stlg)1.5 million of working capital.
In order to start the expansion, a short term facility of (pnds stlg)7.3 million was arranged with ICBC (London) Ltd, and was guaranteed by Zhuzhou CSR Times Electric. The net proceeds of the rights offering will be used by Dynex to repay the ICBC loan and to complete the expansion project.
Under the terms of the rights offering, shareholders of record that fully exercise their rights will be entitled to subscribe for additional common shares, if available, that were not otherwise subscribed for in the rights offering.
Zhuzhou CSR Times Electric, the majority shareholder of the Corporation, has indicated that it will subscribe for 75% of all common shares subscribed for as part of the rights offering. The Directors and Officers of the Corporation have indicated that they intend to exercise all of the rights issued to them.
Assuming that all rights are exercised, the Corporation would receive net proceeds of approximately $22,009,600 after expenses estimated at $500,000.
The rights will be listed for trading on the TSX Venture Exchange under the symbol "DNX.RT" commencing on November 30, 2009, will trade under normal settlement rules until December 22, 2009 and after that will trade on a cash only basis until December 30, 2009 at which time they will be halted from trading.
Further details concerning the rights offering are contained in the final prospectus, which has been filed on SEDAR at www.sedar.com. The foregoing summary of the offering is qualified in its entirety by the full text of the prospectus.
The rights' offering is subject to regulatory approval, including that of the TSX Venture Exchange.
This press release is not an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. This prospectus constitutes an offering of securities of the Corporation only in the provinces of British Columbia, Alberta and Ontario. The rights and the Common Shares issuable on exercise of the rights have not been and will not be registered under the securities laws of any other jurisdiction and are not being offered to persons whose addresses of record are in any other jurisdiction. Affected shareholders should see the final prospectus for details about their eligibility to receive rights.
About the Company
Dynex designs and manufactures high power bipolar semiconductors, high power insulated gate bipolar transistor (IGBT) modules, high power electronic assemblies and radiation hard silicon-on-sapphire integrated circuits (SOS IC's). 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. Its IC products are used in demanding applications in the aerospace industry. 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 CSR Times Electric Co., Ltd.
Zhuzhou CSR 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. CSR 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, CSR 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.
Press announcements and other information about Dynex are available at www.dynexsemi.com.
Further information on CSR Times Electric can be found at www.timeselectric.cn/en
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Dynex Power Inc.
For further information: For further information: Dr. Paul Taylor, President and Chief Executive Officer, or Bob Lockwood, Finance Director and Chief Financial Officer, Dynex Power Inc., Tel: +44 1522 500 500, Email: email@example.com