Baylin Tech coughs up $2.5-million after court loss

Executive Summary

• Baylin Technologies satisfied a Superior Court of Justice order by remitting approximately $2.25 million to an escrow agent.
• The payment was funded through a private placement of 90,000 Series B cumulative redeemable retractable preferred shares at $25 per share to its controlling shareholder.
• The preferred shares carry a 10 % cumulative dividend payable monthly and have redemption provisions effective September 2026 and mandatory redemption by September 2030.

Key Details

• Court order (August 2023) required payment of $1,826,512 plus interest; total remitted ≈ $2.25 million.
• Private placement: 90,000 Series B preferred shares, 10 % cumulative redeemable retractable, non‑voting, issued at $25.00 per share.
• Gross proceeds from the private placement: $2.25 million.
• Dividend terms: cash dividends payable monthly at an annual rate of $2.50 per share.
• Redemption rights:
• Company may redeem, or holder may require redemption, any or all shares at issue price after Sept. 25 2026.
• Mandatory redemption of all outstanding shares on Sept. 25 2030 at issue price.
• Funding source for the court‑ordered payment was the proceeds from this private placement to controlling shareholder (2385796 Ontario Inc.).

Notable Quotes

(No direct quotes provided in the release.)