Samvardhana Motherson International Limited (SMIL) has provided updates on its investment in Prysm Systems Inc. through its indirect wholly-owned subsidiary, MSSL Consolidated Inc. (MSSL Consol). The company announced these developments in a press release dated January 9, 2025.
Prysm Systems’ ongoing development of the Gen 3 prototype has faced delays due to additional funding requirements. To ensure the completion of this project and secure ownership of Prysm’s assets, MSSL Consol has initiated a statutory foreclosure process. This process includes a public auction for Prysm’s assets and is aimed at gaining full control over the company’s patented technology.
MSSL Consol served Prysm a notice of default for outstanding debts amounting to USD 19.875 million. This total includes USD 15.275 million in optionally convertible secured notes and USD 4.6 million in non-convertible debt. As part of the foreclosure proceedings, a public auction of Prysm’s assets has been initiated. Upon completion of the process, MSSL Consol may acquire ownership of substantially all of Prysm’s assets.
To support operations during this transition period, MSSL Consol has committed to providing interim financing of up to USD 3.8 million. This funding is intended to ensure continuity in Prysm’s activities while the statutory processes are finalized.
SMIL clarified that the investment in Prysm, an early-stage technology-driven company, had already been accounted for under conservative accounting practices. Consequently, the current developments will not affect the company’s profitability. Further updates on the foreclosure process are expected to be disclosed before the end of the fiscal year on March 31, 2025.