9 August 2022
Odyssey receives bridge loan from chairman
Odyssey Semiconductor Technologies Inc of Ithaca, NY, USA, which is developing high-voltage vertical power switching components based on proprietary gallium nitride (GaN) processing technology, has received a $1.25m bridge loan from John Edmunds, chairman of its board.
“This capital allows us to build Gen1 engineering product samples in fourth-quarter 2022,” says CEO Mark Davidson. “Our 1000+volt GaN power device milestone completed in second-quarter 2022 further validates our approach to deliver industry-leading efficiency with remarkably high switching frequencies at lower price points than more expensive alternatives, including silicon carbide,” he adds.
“They have been working in earnest and making progress toward delivering revolutionary vertical GaN power transistors which could enable the company - now with Mark Davidson aboard - to capture meaningful opportunities and achieve sustainable growth in the long term,” comments Edmunds.
The firm anticipates that this $1.25m convertible bridge loan will provide adequate cash for growth and working capital through the end of 2022. The note bears 10% interest per annum and is payable in kind at conversion or at maturity in one year. The note may be convertible anytime at the holder’s discretion into shares of common stock at a price equal to the average of the last 20 trading days’ closing price, or automatically converted upon the closing of a public offering of the common stock with aggregate proceeds of at least $5m at a 15% discount to the per share public offering price. The note will not be and has not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the USA absent registration or an applicable exemption from registration requirements.
The $1.25m bridge loan is part of a $3.75m offering of convertible promissory notes approved by the board of directors. The firm has also recently filed a registration statement on Form S-1, paving the way for a potential future equity financing.