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Odyssey Semiconductor Technologies has recently made a public declaration on its engagement in a conclusive agreement to divest a significant portion of its assets to a prominent semiconductor corporation for a sum of $9.52 million in liquid funds. The buyer and seller have reached a mutual agreement to maintain the confidentiality of the buyer’s name for the 20-day “go shop” period.
The asset sale, sanctioned by the Odyssey Board of Directors, is anticipated to conclude in the early third quarter of 2024, contingent upon customary closing conditions, which encompass the consent of Odyssey shareholders.
After accounting for deal-related expenses such as Lawyers, Investment Banking, and other customary transaction expenses, which are currently estimated at $1.15 million, as well as an estimated $6.5 million settlement for Promissory Notes and Loans to establish security interests in the assets released during the exchange, and an estimated $582 thousand to settle accounts payable and accrued expenses, there may be a remaining amount of approximately $1.3 million that could be distributed among the 14.5 million common shareholders. There is a possibility that additional liabilities or claims may occur during the period leading up to the closing or subsequently, which could decrease this potential.
The asset acquisition agreement included a designated “go shop” time lasting 20 days, concluding on April 1, 2024. This period grants the Odyssey Board and its advisors, Craig-Hallum Capital Group, the authority to begin and seek alternative acquisition proposals from external entities, as outlined in the agreement. Subject to the terms and conditions of the agreement, the Odyssey Board possesses the authority to terminate the agreement in order to accept a superior proposal. There is no guarantee that this “go shop” will lead to a better proposal, and Odyssey does not plan to reveal any updates regarding the solicitation process until it deems it necessary or obligatory.
In compliance with Delaware law, a proxy pertaining to the asset sale and associated items will be formulated and distributed to shareholders of record by the conclusion of April. It is anticipated that a notice period and meeting will take place in early June. It is anticipated that the transaction will be finalized on or approximately July 1, with a maximum deadline of July 10, 2024.
Following the conclusion of the transaction and contingent upon the consent of shareholders, it is highly probable that Odyssey’s common stock will be promptly removed from all public stock exchanges. The organization presently intends to conclude its operations and aspires to provide a liquidating dividend, contingent upon the availability of cash at that juncture. According to the present assessment by Odyssey’s management, the Company’s affairs are projected to be concluded by the conclusion of the calendar year 2024.
The post Odyssey Semiconductor Technologies Signs $9.52 Million Asset Sale Agreement appeared first on Power Electronics News.
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