Pixie Dust Technologies Announces Debt Financing
Rhea-AI Summary
Pixie Dust Technologies (Nasdaq: PXDT) has announced new debt financing from The Shoko Chukin Bank, amounting to one billion yen. The funds, intended for working capital, were secured on May 31, 2024, with a maturity date of September 30, 2025. The loan will be repaid in a lump sum on maturity, with an interest rate comprising the lender's short-term prime rate plus a spread of 2.525% per annum. The company anticipates additional debt financing from other Japanese financial institutions and will update stockholders accordingly.
Positive
- Secured a significant loan of one billion yen, boosting working capital.
- Interest and repayment terms are clearly defined, aiding financial planning.
- Potential for additional financing from other institutions, indicating strong lender confidence.
Negative
- High-interest rate (base rate plus 2.525%) increases financial burden.
- Debt repayment in a lump sum could stress future liquidity.
- Increased debt levels may concern shareholders regarding financial stability.
News Market Reaction 1 Alert
On the day this news was published, PXDT declined 0.40%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
New debt financing
On May 31, 2024, Pixie Dust Technologies, Inc. (the "Company") reached an agreement with The Shoko Chukin Bank, Ltd. (the "Lender") to obtain new debt financing (the "New Debt") in the amount of
Below is an outline of terms and conditions of New Debt.
Loan Amount | |
Use of funds | Working capital |
Borrowing Date | May 31, 2024 |
Maturity Date | September 30, 2025 |
Principal Repayment Method | Pay in a lump sum on the Maturity Date |
Base Rate | The lender's short term prime interest rate on each interest payment date |
Spread | |
Applicable Interest Rate | Interest rate calculated by adding a spread to the base interest rate |
The Company also expects to obtain additional debt financing from other financial institutions in
Forward-Looking Statements
Certain statements contained in this press release are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and actual events may differ materially from current expectations. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "aim," "objective," "goal," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Any such forward-looking statements are subject to various risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control, including but not limited to the strength of the economy, changes to the market for securities, the effects of inflation and its associated impact on prevailing interest rates, political or financial instability, and other factors which are set forth in the Company's prospectus that forms a part of the Registration Statement on Form F-1 (File No. 333-272476), as amended, and in all filings with the SEC made by the Company subsequent to the filing thereof (including, without limitation, the Company's most recent annual report filed under cover of Form 20-F). The forward-looking statements included in this press release represent the Company's views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
About Pixie Dust Technologies, Inc.
Pixie Dust Technologies, Inc. is a Japanese technology company focused on commercializing innovative products and materials utilizing proprietary wave technology. The Company is currently focusing on two areas of product development: (1) "Personal Care & Diversity", where wave control technology is applied to mechanobiology and intervention/assistance in vision, hearing, and touch, and (2) "Workspace & Digital Transformation," where metamaterials (technology that creates properties through structure rather than material) and solutions to commercial design problems, such as in offices or construction sites, are applied.
View original content to download multimedia:https://www.prnewswire.com/news-releases/pixie-dust-technologies-announces-debt-financing-302160373.html
SOURCE Pixie Dust Technologies
FAQ
What is the amount of new debt financing secured by Pixie Dust Technologies?
What is the interest rate for the new debt financing for PXDT?
When is the maturity date for Pixie Dust Technologies' new debt?
What is the principal repayment method for PXDT's new debt?
What is the purpose of the new debt financing for Pixie Dust Technologies?
Which bank provided the new debt financing to PXDT?
Is Pixie Dust Technologies planning to secure additional debt financing?
