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SemiLEDs Extends Insider Loan, Adds Stock Repayment Option

Story Highlights
  • SemiLEDs has repeatedly extended insider and major-shareholder loans, now maturing January 15, 2027.
  • The company can increasingly repay these loans in stock, reducing cash strain but heightening dilution risk for shareholders.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
SemiLEDs Extends Insider Loan, Adds Stock Repayment Option

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An announcement from SemiLEDs ( (LEDS) ) is now available.

On January 8, 2019, SemiLEDs entered into secured loan agreements totaling $3.2 million with Chairman and CEO Trung Doan and its then-largest shareholder J.R. Simplot Company, later assigned to Simplot Taiwan Inc., at an annual interest rate of 8% and secured by a second priority lien on the company’s headquarters building. Since then, through a series of amendments dated between January 16, 2021, and January 15, 2026, the company has repeatedly extended the loans’ maturities—most recently to January 15, 2027—while progressively adding flexibility to repay principal and accrued interest with newly issued common stock, capitalizing $364,924.63 of unpaid interest into Simplot Taiwan’s loan and enabling up to $1.2 million of debt to be settled in equity, moves that ease near‑term cash obligations but increase potential dilution for shareholders and underscore SemiLEDs’ ongoing reliance on insider and major-shareholder financing.

The most recent analyst rating on (LEDS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on SemiLEDs stock, see the LEDS Stock Forecast page.

Spark’s Take on LEDS Stock

According to Spark, TipRanks’ AI Analyst, LEDS is a Neutral.

The score is held back primarily by weak profitability (low gross margin and net losses) and a negative P/E, despite improving operating/free cash flow and better leverage. Technically, the stock shows limited near-term stabilization but remains below key longer-term moving averages, keeping the outlook cautious.

To see Spark’s full report on LEDS stock, click here.

More about SemiLEDs

SemiLEDs is a semiconductor company that develops and manufactures LED chips and related components, serving lighting and specialty illumination markets where capital access and balance-sheet flexibility are important to sustaining operations and product development.

Average Trading Volume: 32,416

Technical Sentiment Signal: Sell

Current Market Cap: $16.26M

Learn more about LEDS stock on TipRanks’ Stock Analysis page.

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