SemiLEDs Reports Material Agreement & Unregistered Equity Sales

TL;DR

**SemiLEDs just dropped an 8-K about a new material agreement and selling unregistered stock, so keep an eye on LEDS!**

AI Summary

SemiLEDs Corp (NASDAQ: LEDS) filed an 8-K on February 20, 2024, reporting an entry into a material definitive agreement and unregistered sales of equity securities. The filing indicates the company's address as 3F, No.11 Ke Jung Rd., Chu-Nan Site, Hsinchu Science Park, Chu-Nan 350, Miao-Li County, Taiwan, R.O.C., and its telephone number as +886-37-586788. This report covers events that occurred on February 20, 2024.

Why It Matters

This filing signals significant corporate actions, potentially impacting SemiLEDs' capital structure and future operations, which could influence investor perception and stock performance.

Risk Assessment

Risk Level: medium — Unregistered sales of equity securities can dilute existing shareholders and may indicate a need for capital, which carries inherent risks.

Key Players & Entities

• SemiLEDs Corp (company) — Registrant
• February 20, 2024 (date) — Date of earliest event reported
• 3F, No.11 Ke Jung Rd., Chu-Nan Site, Hsinchu Science Park, Chu-Nan 350, Miao-Li County, Taiwan, R.O.C. (company) — Principal executive offices address
• +886-37-586788 (dollar_amount) — Registrant's telephone number
• Delaware (company) — State of incorporation

FAQ

Key Financial Figures

• $0.0000056 — ch registered Common Stock, par value $0.0000056 LEDS The Nasdaq Stock Market Chec
• $1.7 million — ve Officer, with an aggregate amount of $1.7 million and an annual interest rate of 8% (the
• $800,000, b — ed interest, in an amount not to exceed $800,000, by issuing shares of the Company's common
• $800,000 — notice indicating its intent to prepay $800,000 of loan principal by delivering 629,921
• $1.27 — Mr. Doan, based on the closing price of $1.27 per share on February 8, 2024. The shar

Filing Documents

• leds-20240220.htm (8-K) — 47KB
• leds-ex10_1.htm (EX-10.1) — 24KB
• 0000950170-24-016765.txt ( ) — 193KB
• leds-20240220.xsd (EX-101.SCH) — 30KB
• leds-20240220_htm.xml (XML) — 5KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On January 8, 2019, SemiLEDs Corporation (the "Company") entered into a secured loan agreement with Trung Doan, its Chairman and Chief Executive Officer, with an aggregate amount of $1.7 million and an annual interest rate of 8% (the "Loan Agreement"). The Loan Agreement is secured by a second priority security interest on the Company's headquarters building. The maturity date of the Loan Agreement was January 14, 2021. On January 16, 2021, the maturity date of the Loan Agreement was extended with same terms and interest rate for one year to January 15, 2022, and on January 14, 2022, the maturity date of the Loan Agreement was extended again with same terms and interest rate for one more year to January 15, 2023. On January 13, 2023, the maturity date of the Loan Agreement was further extended with same terms and interest rate for one year to January 15, 2024. On January 7, 2024, the Company amended the Loan Agreement to extend the maturity date to January 15, 2025. All other terms and conditions of the Loan Agreement remain the same. On February 9, 2024, the Company and Trung Doan entered into the Fifth Amendment to the Loan Agreement (the "Amended Loan Agreement"). The Amended Loan Agreement, upon the mutual agreement of the Company and Trung Doan, permits the Company to repay any principal amount or accrued interest, in an amount not to exceed $800,000, by issuing shares of the Company's common stock to Trung Doan as partial repayment of the Loan Agreement at a price per share equal to the closing price of the Company's common stock immediately preceding the business day of the payment notice date. On February 9, 2024, the Company delivered a payment notice indicating its intent to prepay $800,000 of loan principal by delivering 629,921 shares of the Company's common stock to Mr. Doan, based on the closing price of $1.27 per share on February 8, 2024. The shares of common stock were issued in reliance o

02. Unregistered Sales of Equity Securities

Item 3.02. Unregistered Sales of Equity Securities. The information set forth in Items 1.01 of this Current Report is incorporated by reference into this Item 3.02. 2

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 Fifth Amendment to Loan Agreement dated February 9, 2024 between SemiLEDs Corporation and Trung Doan 104 Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document. 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: February 20, 2024 SemiLEDs Corporation By: /s/ Christopher Lee Name: Christopher Lee Title: Chief Financial Officer 4

View Full Filing

View this 8-K filing on SEC EDGAR