Dynex

CLIENT MANDATE

Welch Capital Partners acted as an Independent Financial Advisor to the Special Committee to the Board of Directors of Dynex Power Inc.

Dynex Power Inc. (TSXV: DNX) is a leading, high power semiconductor company whose operations are in the United Kingdom. Welch Capital Partners provided a fairness opinion of the privatization transaction with Zhuzhou CRRC Times Electric Co., Ltd (“CRRC Times Electric”).

WELCH CAPITAL PARTNERS’ APPROACH

Welch Capital Partners was selected a part of a competitive process for the engagement, whereby CRRC Times Electric, or one of its affiliates, will acquire all the DNX’s common shares that it does not already own for $0.65 per share in cash. CRRC Times Electric currently holds approximately 75% of the issued and outstanding common shares in the capital of DNX. The privatization transaction was ultimately approved by its shareholders in March 2019.

Welch Capital Partners was approached late in the process established by the Special Committee to the Board of Directors, and as a result, was required to provide a fairness opinion within 7 days. In order to meet this deadline, Welch Capital Partners drew upon the knowledge of its cross lines of service and specialized experts, including specialists in audit, tax, finance and valuations. With apparent seamless integration, Welch Capital Partners was able to deliver on the fairness opinion mandate and prepare a business valuation that complied with OSC Multilateral Instrument 61 101. Welch Capital Partners was also able, in short order, to provide the client with various scenarios and sensitivity analysis on the valuation results, helping provide additional context on the strength of the privatization offer.

THE WELCH CAPITAL PARTNERS ADVANTAGE

Welch Capital Partners leveraged its diverse in house expertise and agile processes to deliver on this very important mandate under a compressed timeline.

With a razor sharp focus on delivering high quality client service, Welch Capital Partners was able to fully understand its client’s concerns and need for professional yet efficient results. According to a member of the Special Committee to the Board of Directors: “Thank you [Welch Capital Partners] for your good work, particularly working under a tight timeline. Everything was top quality”.

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CLIENT TESTIMONIAL

“Thank you [Welch Capital Partners] for your good work, particularly working under a tight timeline. Everything was top quality”

— A MEMBER OF THE SPECIAL COMMITTEE TO THE BOARD OF DIRECTORS