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MSSL Consol had previously invested in Prysm Systems Inc., a technology-driven entity, through 12% optionally convertible secured notes. However, due to unmet conditions for converting the notes into equity, SMIL has opted for an alternative strategy to safeguard its investment.
To ensure continuity in the development of Prysm’s Gen 3 prototype and to complete the associated processes, SMIL has initiated a statutory foreclosure process and a public auction for Prysm’s assets. These measures aim to achieve full ownership of the assets and patented technology, ensuring control over critical innovations.
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“To ensure the continuity of the development work and to ensure full ownership of the resultant assets and the path-breaking patented technology by MSSL Consol, a statutory foreclosure process and public auction for Prysm’s assets is being initiated,” Samvardhana Motherson said.
To ensure uninterrupted operations during the transition, MSSL Consol has agreed to provide interim financing of up to $3.8 million. SMIL clarified that, due to conservative accounting policies, it has already accounted for the investment in Prysm, ensuring no adverse impact on its profitability.
The company plans to provide additional updates on the foreclosure process by the end of the fiscal year, March 31, 2025. This strategic move reflects SMIL’s commitment to leveraging Prysm’s cutting-edge technology while safeguarding its financial interests.
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Shares of Samvardhana Motherson International Ltd ended at ₹148.70, down by ₹2.65, or 1.75% on the BSE.
First Published: Jan 9, 2025 9:49 PM IST
