New User:

Forgot your password?

Stock Market & Financial Investment News

News Breaks
December 31, 2012
16:16 EDTDYSLDynasil Corporation of America defaults on financial covenants in loan agreement
Dynasil Corporation of America announced that the company has failed to comply with the financial covenants set forth in the terms of its outstanding indebtedness for its Q4 ended September 30. These covenants require the company to maintain specified ratios of EBITDA to fixed charges and to total/senior debt. The company continues to be current with all principal and interest payments due on all its outstanding indebtedness and management expects to continue discussions with its lenders to address the financial covenant situation. These financial covenant defaults give the lenders the right to accelerate the maturity of the indebtedness outstanding and foreclose on any security interest. Furthermore, Sovereign Bank, N.A., the company's senior lender, may, at its option, impose a default interest rate with respect to the senior debt outstanding, which is 5% higher than the rate otherwise in effect. To date, the lenders have not taken any such actions. However, the company cannot predict when or whether a resolution of this situation will be achieved. As of September 30, the company had total indebtedness outstanding of approximately $12M, consisting of approximately $9M of senior debt owed to Sovereign Bank and approximately $3M of subordinated debt owed to Massachusetts Capital Resources Company. The company's indebtedness is secured by substantially all the accounts and assets of the company and is guaranteed by its subsidiaries. The causes for the covenant violations are lower revenue and higher than expected expenses in the company's Dynasil Products and RMD divisions during the fiscal quarter ended September 30, combined with the continued investment in Dynasil Biomedical Corp. and the company's Dual Mode nuclear detection initiative. In addition, the company incurred a significant, non-recurring charge of approximately $466,000 to its selling, general and administrative expenses during that quarter related to costs incurred as a result of a review, under the direction of the Audit Committee of the board, of certain cash application processes and billing practices of the RMD division.
News For DYSL From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
August 20, 2015
09:03 EDTDYSLDynasil Corporation to supply crystal components to security equipment provider
Subscribe for More Information
August 18, 2015
15:49 EDTDYSLDynasil unit announces conversion of patent application
Dynasil Corporation of America announced the conversion of Xcede Technologies, provisional U.S. Patent application claiming novel tissue patch systems, methods and compositions. Xcede Technologies, a subsidiary of Dynasil Biomedical Corp, is based in Rochester, MN and began operations in October 2013 following a technology transfer from DBM. Xcede is committed to the development and manufacturing of innovative hemostatic and sealant products for surgical application. Xcede's first product, currently under development, is a resorbable hemostatic patch to be used when conventional techniques are inadequate or impractical during general or cardiovascular surgery. The conversion of the provisional patent describes the combination of chemistry, coating and drying process that are utilized in coating the resorbable Xcede Patch fibrin backing. The method described uses a series of steps in which the coating is applied to the substrate which in the end provides a hemostatic patch that has high tensile strength in combination with high adhesive properties and maintained elasticity. The coated product described within this patent has the ability to seal a wide range of surgical bleeding complications, but the high strength characteristics provide the exciting possibility of sealing high pressure bleeding that currently has not been addressed in the market place."We believe Xcede continues to represent a hidden gem in the assets of Dynasil. We are encouraged by Xcede's recent technology developments and the potential to revolutionize the multi-billion dollar global fibrin sealants and hemostasis markets," said Peter Sulick, Chairman and CEO of Dynasil.

Sign up for a free trial to see the rest of the stories you've been missing.
I agree to the disclaimer & terms of use