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 Philip.mohtadi@baylintech.com 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.
About Baylin
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: investor.relations@baylintech.com.
SOURCE Baylin Technologies Inc.